Direct Materials Budget

Question 1

Direct Materials Budget

Answer 1

1. Required Production in Units of a finished good
   2.units of raw materials needed per unit of finished goods
   (Multiply 1 and 2) 3. Units of raw materials needed to meet production
   4.Add desired units of ending raw materials inventory
   (Add 3 and 4) 5. Total Units of Raw Materials Needed
2. Units of Beginning raw materials inventory
   (Subtract 5 from 6) 7.Units of raw materials to be purchased
3. Unit cost of raw materials
   (multiply 7 & 8) Cost of raw materials to be purchased