Soda Company is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda 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 Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of March:

Brand 1	108,000 two-liter bottles
Brand 2	82,000 two-liter bottles

In addition, assume that the concentrate costs $84 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.1 pound per 100 liters of carbonated water in blending Brand 1 and 0.15 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that two-liter bottles cost $0.08 per bottle and carbonated water costs $0.06 per liter.

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Prepare a direct materials purchases budget for March 2014, assuming inventories are ignored, because there are no changes between beginning and ending inventories for concentrate, bottles, and carbonated water. If required, round to the nearest whole number (except for unit price amounts, which should be rounded to nearest cent if required).

Soda Company-Wakefield Plant
Direct Materials Purchases Budget
For the Month Ending March 31, 2014 (assumed data)
		Concentrate		2-Liter Bottles		Carbonated Water
Materials required for production:
Brand 1		lbs. Correct 9		btls. Correct 10		ltrs. Correct 11
Brand 2		Correct 13		Correct 14		Correct 15
Total materials		lbs. Correct 17		btls. Correct 18		ltrs. Correct 19
Direct materials unit price		x $ Correct 21		x $ Correct 22		x $ Correct 23
Total direct materials to be purchased		$ Correct 25		$ Correct 26		$ Correct 27

Answer rating: 100% (QA)

The purchase budget for the month of Mar 2012 is asked Also there are no changes i... View the full answer