Asked by
Alatron Graybot
on Oct 10, 2024
Verified
When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased.
Direct Materials Budget
A financial plan that estimates the cost of raw materials required for production.
Beginning Inventory
The value of goods available for sale or use at the start of an accounting period, carried over from the end of the previous period.
- Acquire knowledge of the steps involved in formulating individual budgets, for instance, production, direct materials, and direct labor.
Verified Answer
EW
Learning Objectives
- Acquire knowledge of the steps involved in formulating individual budgets, for instance, production, direct materials, and direct labor.