In the direct materials purchases budget,the key equation used to determine direct materials to be purchased is:
A)Materials needed in production - Desired materials in ending inventory + Materials in beginning inventory.
B)Materials needed in production + Desired materials in ending inventory + Materials in beginning inventory.
C)Materials needed in production + Desired materials in ending inventory - Materials in beginning inventory.
D)Materials needed in production - Desired materials in ending inventory - Materials in beginning inventory.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The correct equation for determining direct materials to be purchased is: Materials needed in production + Desired materials in ending inventory - Materials in beginning inventory. This accounts for the total materials required for production, ensures there are enough materials for future production (ending inventory), and subtracts the materials already available at the start (beginning inventory).

In the Direct Materials Purchases Budget,the Key Equation Used to Determine