Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 20 Aug 2017 My Price 11.00

Coca-Cola Enterprises

Direct materials purchases budget

 

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 are 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 budget for May 2016, assuming inventories are ignored,  because  there  are  no  changes  between  beginning  and  ending  inventories  for

 

concentrate, bottles, and carbonated water.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 11.00

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