Question

. The budgeted amount of raw materials to be purchased is determined by: A. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule. B. Subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule. C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials. D. Adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials. E. Adding the desired ending inventory of work in process inventory to the raw materials needed to meet the product

Answer 1

Answer:

C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.

Explanation:

In a budget workflow for raw materials, the relationship between the opening  balance, purchase, requirement for production and ending balance may be stated as

opening + purchases - required = closing balance

Hence the raw materials to be purchased

purchases = closing balance + required - opening

C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.

Answer 2

Answer:

C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.

Explanation:

Hope this helps