In the direct materials budget the quantity of direct materials to be purchased is computed by adding direct materials required for production to
A) desired ending direct materials.
B) beginning direct materials.
C) desired ending direct materials less beginning direct materials.
D) beginning direct materials less desired ending direct materials.

Question

Quizplus · Accepted Answer

The quantity of direct materials to be purchased is the amount of direct materials required for production plus the desired ending direct materials, minus the beginning direct materials. This allows for a smooth production process without shortages or excess inventory.

In the Direct Materials Budget the Quantity of Direct Materials