Question

When preparing a direct materials budget, the units of raw material needed to meet production should be ______ to desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased.

Answer 1

Answer:

Added

Explanation:

For determining the amount of raw material to be purchased, the following things need to be adjusted

1. The raw material needed - Added

2. Ending inventory - Added

3. Beginning inventory - Deduct

In mathematically,  

Purchase of raw material = Raw material needed to meet production + ending inventory of raw material - beginning inventory of raw material

Hence, it should be added to desired ending inventory