Coca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola in North America. The company purchases...
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Coca-Cola Enterprises (CCE) is the largest bottler of Coca-Cola in North America. The company purchases Coke and Sprite concentrate from The Coca-Cola Company (KO), 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. The concentrate is used at a rate of 0.20 pound per 100 liters of carbonated water in blending Coke and at a rate of 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, assuming no changes between beginning and ending inventories for all three materials. Enter all amounts as positive numbers.
COCA-COLA ENTERPRISESDALLAS PLANT
Direct Materials Purchases Budget
For the Month Ending October 31
Concentrate
2-Liter Bottles
Carbonated Water
Materials required for production:
Coke
fill in the blank 1 lbs.
fill in the blank 2 btls.
fill in the blank 3 ltrs.
Sprite
fill in the blank 4
fill in the blank 5
fill in the blank 6
Total materials
fill in the blank 7 lbs.
fill in the blank 8 btls.
fill in the blank 9 ltrs.
Direct materials unit price
$fill in the blank 10
$fill in the blank 11
$fill in the blank 12
Total direct materials to be purchased
$fill in the blank 13
$fill in the blank 14
$fill in the blank 15
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