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coca cola enterprises is the largest bottler of coca cola in north america the compa 647742

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 Chattanooga, Tennessee, bottling plant are as follows for the month of June:


192,000 two liter bottles


148,000 two liter bottles

In addition, assume that the concentrate costs $75 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 $0.07 per bottle and carbonated water costs $0.05 per liter.

Prepare a direct materials purchases budget for June 2008, assuming no changes between beginning and ending inventories for all three materials.

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