Question

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

Answer 1

Answer:

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.