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The Budgeted Amount of Raw Materials Necessary for a Period

Question 31

Multiple Choice

The budgeted amount of raw materials necessary for a period is computed by:


A) Subtracting the beginning inventory of raw materials from the materials necessary to meet the production budget
B) Subtracting the desired ending inventory of raw materials to the raw materials necessary to meet the production budget and adding that result to the desired ending inventory of raw materials
C) Adding the desired ending inventory of raw materials to the raw materials necessary to meet the production budget
D) Adding the desired ending inventory of raw materials to the raw materials necessary to meet the production budget and subtracting the desired ending inventory of raw materials

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