(Solution) - Coca Cola Enterprises is the largest bottler of Coca Cola in North America The -(2025 Original AI-Free Solution)
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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 2-liter bottles. Assume that the estimated production for Coke and Sprite 2-liter bottles at the Chattanooga, Tennessee, bottling plant are as follows for the month of September:
Coke ....... 178,000 two-liter bottles
Sprite ....... 142,000 two-liter bottles
In addition, assume that the concentrate costs $80 per pound for both Coke and Sprite and is used at a rate of 0.2 pound per 100 liters of carbonated water in blending Coke and 0.15 pound per 100 liters of carbonated water in blending Sprite. Assume that two-liter bottles cost $0.09 per bottle and carbonated water costs $0.04 per liter.
Prepare a direct materials purchases budget for September 2006, assuming no changes between beginning and ending inventories for all three materials.