Which of the following is not a step in preparing the direct materials purchases budget?
A)Enter the budgeted sales from the sales budget.
B)Calculate the direct materials production needs by multiplying the number of units to be produced by the direct material standard quantity for one unit.
C)Calculate the total direct materials required for the period by adding the ending inventory to the direct materials production needs.
D)Calculate the required purchases by subtracting the beginning direct materials balance from the total direct materials required for the period.

Question

Quizplus · Accepted Answer

Entering the budgeted sales from the sales budget is not a step in preparing the direct materials purchases budget. This information is used to prepare the sales budget, which is then used to calculate the direct materials production needs in the direct materials purchases budget. The other options listed (B, C, and D) are all steps in preparing the direct materials purchases budget.

Which of the Following Is Not a Step in Preparing