Which of the Following Is the Basic Formula of the Direct

Multiple Choice

Which of the following is the basic formula of the direct materials usage budget?

A) Ending inventory of direct materials + direct materials purchased and used during the period = direct materials to be used this period
B) Beginning inventory of direct materials + direct materials purchased and used during the period = direct materials to be used this period
C) units used in production + target ending inventory - beginning inventory = purchases to be made for the budget period
D) units used in production + target beginning inventory - ending inventory = purchases to be made for the budget period