# Direct materials purchases budget Coca-Cola Enterprises is the largest bottler of Coca-Cola® in North America. 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 Dallas, Texas, bottling plant are as follows for the month of October: 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 carlxmated water in blending Coke and at a rate of 0.15 pound per 100 liters of carlxmated water in blending Sprite. Assume that two-liter bottles cost \$0.04 per bottle and carlxmated 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.

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

#### Solutions

Chapter
Section
Chapter 13, Problem 13.8E
Textbook Problem

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