The budgeted direct materials purchases is based on the sum of (1) the materials needed for production and (2) the desired ending materials inventory, less (3) the estimated beginning materials inventory.

Question

Quizplus · Accepted Answer

This statement is true. The budgeted direct materials purchases formula takes into account the materials needed for production, the desired ending inventory, and the estimated beginning inventory to determine the total amount of materials to be purchased.

The Budgeted Direct Materials Purchases Is Based on the Sum