Question

Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases...

Direct Materials Purchases Budget

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 March: Brand 1 145,000 two-liter bottles Brand 2 110,000 two-liter bottles In addition, assume that the concentrate costs $63 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.1 pound per 100 liters of carbonated water in blending Brand 1 and 0.15 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 $0.075 per bottle and carbonated water costs $0.055 per liter. Prepare a direct materials purchases budget for March 2016, 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 Plant

Direct Materials Purchases Budget

For the Month Ending March 31, 2016 (assumed data

Homework Answers

Answer #1
Brand 1 brand 2
Manufacturing quantity (no of bottles) 145000 110000
Total liters of quantity manufactured (*2) 290000 220000
No of pounds of concentrate required 290 330
Working above (290000*.1/100) (220000*.15/100)
Cost to purchase concentrate 18270(290*63) 20790 (330*63)
Two liter bottle purchase cost

10875

(145,000*0.075)

8250

(110000*0.075

Carbonated water cost 15950 (290000*0.055) 12100 (220000*0.055)

Total material brand 1. Brand 2

Purchase cost. 45095. 41140

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases...
Direct Materials Purchases Budget 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 33,000 two-liter bottles Brand 2...
Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases...
Direct Materials Purchases Budget 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 33,000 two-liter bottles Brand 2...
For a healthy person, how many 2 liter soda bottles of water do the kidneys filter...
For a healthy person, how many 2 liter soda bottles of water do the kidneys filter per day and how much urine is produced per day? 1 bottle and about 20 liters. 10 bottles and about 1 liter. 50 bottles and about 0.5 liter. 90 bottles and 2 liters. 120 bottles and 3 liters.
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 56,000 passenger car tires and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 56,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 31 lbs. per unit 72 lbs. per unit Steel belts 5 lbs. per unit 13 lbs. per unit The purchase prices of rubber and steel are $3.20 and $4.20 per pound, respectively. The desired ending inventories of rubber and steel belts are...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 51,000 passenger car tires and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 51,000 passenger car tires and 15,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 27 lbs. per unit 63 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 39,000 passenger car tires and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 39,000 passenger car tires and 12,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 26 lbs. per unit 61 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.2 and $4.2 per pound, respectively. The desired ending inventories of rubber and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 52,000 passenger car tires and...
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 52,000 passenger car tires and 16,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 35 lbs. per unit 82 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.5 and $4.6 per pound, respectively. The desired ending inventories of rubber and...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2016: Units 12" Pizza 16" Pizza Budgeted production volume 15,900 25,900 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 16" Pizza Direct materials: Dough 0.90 lb. per unit 1.50 lbs. per...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2016: Units 12" Pizza 16" Pizza Budgeted production volume 15,400 20,800 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 16" Pizza Direct materials: Dough 0.90 lb. per unit 1.50 lbs. per...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2016: Units 12" Pizza 16" Pizza Budgeted production volume 16,600 21,300 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 16" Pizza Direct materials: Dough 0.90 lb. per unit 1.50 lbs. per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT