Coca Cola Enterprises CCE is the largest bottler of Coca Cola in Western Europe The company purchases Coke and Sprite

Question

Coca 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 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 Sprite 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 assuming inventories are ignored because there are no changes between beginning and ending inventories for concentrate bottles and carbonated water 153 000 two liter bottles 86 500 two liter bottles Materials required for production Coke Sprite Feedback Coca Cola Enterprises Wakefield Plant Direct Materials Purchases Budget For the Month Ending May 31 assumed data Concentrate 2 Liter Bottles Total materials Direct materials unit price Total direct materials to be purchased Check My Work x s 459 lbs 173 632 lbs 75 153 000 btls 86 500 239 500 btls 0 08 Carbonated Water x 5 306 000 Itrs 173 000 479 000 Itrs 0 06 19 140 X

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