Budgeted direct materials purchases in units equals:
A) budgeted direct materials usage less beginning direct materials plus desired ending direct materials.
B) budgeted direct materials usage plus beginning direct materials less desired ending direct materials.
C) budgeted direct materials in stock plus beginning direct materials inventory less desired ending direct materials.
D) budgeted direct materials in stock less beginning direct materials inventory plus desired ending direct materials.

Question

Quizplus · Accepted Answer

Budgeted direct materials purchases in units is calculated by adding the desired ending direct materials to the budgeted direct materials usage and then subtracting the beginning direct materials. This formula ensures that the company purchases enough materials to meet its production needs while also achieving its inventory goals.

Budgeted Direct Materials Purchases in Units Equals