On the direct materials budget, the total quantity of direct materials to purchase is computed as

Question

Quizplus · Accepted Answer

The total quantity of direct materials to purchase is the quantity needed for production plus the desired end inventory of direct materials, minus the beginning inventory of direct materials. This ensures that the company has enough direct materials to meet production needs and maintain desired inventory levels. Option A correctly identifies this calculation.

On the Direct Materials Budget, the Total Quantity of Direct