Which of the following items affect the amount of direct material that must be purchased during a period?
I.The amount of raw material in beginning inventory
II.The amount of raw material in ending inventory

Question

Quizplus · Accepted Answer

Both the amount of raw material in beginning inventory and ending inventory affect the amount of direct material that must be purchased during a period. Beginning inventory represents the raw material that is available at the start of the period and can be used for production, while ending inventory represents the unused raw material that is carried forward to the next period. The difference between beginning and ending inventory determines the amount of raw material used in production during the period and the corresponding amount that needs to be purchased.

Which of the Following Items Affect the Amount of Direct