When preparing a direct materials budget, the required purchases of raw materials in units equals: Question 9 options: A) raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials. B) raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials. C) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials. D) raw materials needed to meet the production schedule - desired ending inventory of raw materials - beginning inv

Question

Serena

Business

14 March, 15:32

When preparing a direct materials budget, the required purchases of raw materials in units equals: Question 9 options: A) raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials. B) raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials. C) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials. D) raw materials needed to meet the production schedule - desired ending inventory of raw materials - beginning inv

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Answers (1)

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Matthew Owens · Answer 1

A. Materials to purchase = RM needed for production + RM ending - RM beginning

Explanation:

There are already RM in stock which can satisfy partially RM for production need and RM for desired ending stock so for this amt, purchase should be lowered.