When preparing a direct materials budget, the required purchases of raw materials in units equals:

Question

Quizplus · Accepted Answer

The correct formula for calculating the required purchases of raw materials in units is: raw materials needed to meet the production schedule + desired ending inventory of raw materials − beginning inventory of raw materials. This accounts for the total materials needed for production, ensures there is enough material for the desired ending inventory, and adjusts for what is already available at the beginning.

When Preparing a Direct Materials Budget, the Required Purchases of Raw