Question: The budgeted amount of raw materials to be purchased is determined by:
- adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.
- subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule.
- adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
- adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials.