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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Definitions:

Replace Defective

The process of substituting goods or services that are flawed or do not meet the contractual specifications.

Commercial Unit

A standard of goods or products that are considered as a single whole for purposes of sale and division, often relevant in transactions and legal contracts.

Bales of Hay

Bundles of hay that have been tightly bound with twine or wire and are used for feeding livestock or as agricultural mulch.

Accepted

Recognized as true or valid; in the context of contracts, to agree to the terms of an offer.