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: Brand 1 71,000 two-liter bottles Brand 2 54,000 two-liter bottles In addition, assume that the concentrate costs $87 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and 0.2 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 $0.087 per bottle and carbonated water costs $0.067 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. 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 PlantDirect Materials Purchases BudgetFor the Month Ending May 31 (assumed data) Concentrate 2-Liter Bottles Carbonated Water Total Materials required for production: Brand 1 fill in the blank 1lbs. fill in the blank 2btls. fill in the blank 3ltrs. Brand 2 fill in the blank 4 fill in the blank 5 fill in the blank 6 Total materials required fill in the blank 7lbs. fill in the blank 8btls. fill in the blank 9ltrs. Unit price x $fill in the blank 10 x $fill in the blank 11 x $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 $fill in the blank 16 Previous Nex

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: Brand 1 71,000 two-liter bottles Brand 2 54,000 two-liter bottles In addition, assume that the concentrate costs $87 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and 0.2 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 $0.087 per bottle and carbonated water costs $0.067 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. 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 PlantDirect Materials Purchases BudgetFor the Month Ending May 31 (assumed data) Concentrate 2-Liter Bottles Carbonated Water Total Materials required for production: Brand 1 fill in the blank 1lbs. fill in the blank 2btls. fill in the blank 3ltrs. Brand 2 fill in the blank 4 fill in the blank 5 fill in the blank 6 Total materials required fill in the blank 7lbs. fill in the blank 8btls. fill in the blank 9ltrs. Unit price x $fill in the blank 10 x $fill in the blank 11 x $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 $fill in the blank 16 Previous Nex

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 32P: Paladin Company manufactures plain-paper fax machines in a small factory in Minnesota. Sales have...

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Brand 1	71,000 two-liter bottles
Brand 2	54,000 two-liter bottles

In addition, assume that the concentrate costs $87 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.15 pound per 100 liters of carbonated water in blending Brand 1 and 0.2 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 $0.087 per bottle and carbonated water costs $0.067 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. 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 PlantDirect Materials Purchases BudgetFor the Month Ending May 31 (assumed data)

	Concentrate	2-Liter Bottles	Carbonated Water	Total
Materials required for production:
Brand 1	fill in the blank 1lbs.	fill in the blank 2btls.	fill in the blank 3ltrs.
Brand 2	fill in the blank 4	fill in the blank 5	fill in the blank 6
Total materials required	fill in the blank 7lbs.	fill in the blank 8btls.	fill in the blank 9ltrs.
Unit price	x $fill in the blank 10	x $fill in the blank 11	x $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	$fill in the blank 16

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