The budgeted direct materials purchases are based on the sum of (1) the materials needed for production and (2) the desired ending materials inventory, less (3) the estimated beginning materials inventory.

Question

Quizplus · Accepted Answer

This statement is true. The budgeted direct materials purchases formula is: 
Materials needed for production + desired ending materials inventory - estimated beginning materials inventory = budgeted direct materials purchases.

The Budgeted Direct Materials Purchases Are Based on the Sum