Answer Happy

Global Beverages bottles two soft drinks: lemonade and diet
lemonade. All inventory is in direct materials and finished goods
at the end of each working day. There is no work-in-process
inventory.
Global Beverages uses a lot size of 1,000 cases as the unit of
analysis in its budgeting (each case contains 24
bottles). Direct materials are expressed in terms of lots, in
which one lot of direct materials is the input necessary to yield
one lot (1,000 cases) of beverages. The following purchase
prices are forecast for direct materials in 2012:
Lemonade
Diet Lemonade
Syrup
$ 1,200 per lot
$ 1,100 per lot
Containers (bottles, caps, etc.)
$ 1,000 per lot
$ 1,000 per lot
Packaging
$ 800 per lot
$ 800 per lot
All direct material purchases are on account. The two soft
drinks are bottles using the same equipment. The only difference in
the bottling process for the two soft drinks is the
syrup.
Summary data used in developing budgets for 2012
are:
Required:
Please use the information provided above to prepare the
following budgets: PLEASE STEP FOR STEP SOLUTION