The direct materials budget shows: $\begin{array}{llcc}
\text { Desired ending direct materials } & \text { 2,000 kilograms} \
\text { Materials purchased } & \text { 51,400 kilograms } \
\text { Beginning inventory on hand} & \text {1.200 kilograms }\
\end{array}$
How much are the total direct materials needed for production?
A)50,600 kilograms
B)52,600 kilograms
C)52,200 kilograms
D)51,400 kilograms

Question

The direct materials budget shows: $\begin{array}{llcc}
  \text { Desired ending direct materials } & \text {  2,000 kilograms} \
 \text {  Materials purchased } & \text {  51,400 kilograms  } \
 \text {   Beginning inventory on hand} & \text {1.200 kilograms  }\
\end{array}$
 How much are the total direct materials needed for production?
A)50,600 kilograms
B)52,600 kilograms
C)52,200 kilograms
D)51,400 kilograms

Quizplus · Accepted Answer

Total direct materials needed for production = Materials purchased - Desired ending inventory + Beginning inventory = 51,400 - 2,000 + 1,200 = 50,600 kilograms.

The Direct Materials Budget Shows How Much Are the Total Direct Materials Needed for Production