Which of the Following Is the Basic Formula of the Direct

question 127

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

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