Coca-Cola Enterprises is the largest bottler of Coca-Cola® in North America. The company purchases Coke® and Sprite® concentrate from The Coca-Cola Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Coke and Sprite two-liter bottles at the Dallas, Texas, bottling plant are as follows for the month of October:
Coke .. 1,500,000 two-liter bottles
Sprite .... 800,000 two-liter bottles

In addition, assume that the concentrate costs $75 per pound for Coke and Sprite and is used at a rate of 0.20 pound per 100 liters of carbonated water in blending Coke and 0.15 pound per 100 liters of carbonated water in blending Sprite. Assume that two-liter bottles cost $0.04 per bottle and carbonated water costs $0.03 per liter.
Prepare a direct materials purchases budget for October 2013, assuming no changes between beginning and ending inventories for all threematerials.

  • CreatedFebruary 04, 2014
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