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budgeted amount of raw materials

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The budgeted amount of raw materials to be purchased is determined by:

- adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.

- subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule.

- adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.

- adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials.

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The budgeted amount of raw materials to be purchased.

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Answer: Adding the desired ending inventory of raw materials to the raw materials needed to meet the production ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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