Direct Materials Purchases BudgetCoca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola® in Western Europe. The company purchases Coke®and Sprite® concentrate from The Coca-Cola Company(KO), dilutes and mixes the concentrate with carbonatedwater, and then fills the blended beverage into cans orplastic two-liter bottles. Assume that the estimatedproduction for Coke and Sprite two-liter bottles at theWakefield, UK, bottling plant is as follows for the month ofMay:CokeSpriteIn addition, assume that the concentrate costs $75 perpound for both Coke and Sprite and is used at a rate of0.15 pound per 100 liters of carbonated water in blendingCoke and 0.10 pound per 100 liters of carbonated water inblending Sprite. Assume that two liters of carbonated waterare used for each two-liter bottle of finished product.Assume further that two-liter bottles cost $0.08 per bottleand carbonated water costs $0.06 per liter.153,000 two-liter bottles86,500 two-liter bottlesPrepare a direct materials purchases budget for May,assuming inventories are ignored, because there are nochanges between beginning and ending inventories forconcentrate, bottles, and carbonated water.Coca-Cola Enterprises-Wakefield PlantDirect Materials Purchases BudgetFor the Month Ending May 31 (assumed data)Concentrate 2-Liter BottlesCarbonatedWaterMaterials required forproduction:Coke®SpriteⓇTotal materialsDirect materials unit priceTotal direct materials to bepurchasedlbs.lbs.x $btls.btls.Itrs.Itrs.

Direct material budget shows the total direct material to be purchased for a period to fulfil the…

Answered: Plant Coca-Cola Enterprises-Wakefield…

Business

Accounting

Plant Coca-Cola Enterprises-Wakefield Direct Materials Purchases Budget For the Month Ending May 31 (assumed data)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 12E

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Coca-Cola Enterprises is the largest bottler of Coca-Cola® in Western Europe. 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 Wakefield, UK, bottling plant is as follows for the month of May: Coke 153,000 two-liter bottles Sprite 86,500 two-liter bottles In addition, assume that the concentrate costs $75 per pound for both Coke and Sprite and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Coke and 0.10 pound per 100 liters of carbonated water in blending Sprite. 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. Prepare a direct materials purchases…
7. 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 May:
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