Questions: When preparing a direct materials budget, the required purchases of raw materials in units equals: raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials. raw materials needed to meet the production schedule - desired ending inventory of raw materials - beginning inventory of raw materials. raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials. raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.

The answer is the first one: raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials.

Explanation for each option:

1. Raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials.

   • This is the correct formula for calculating the required purchases of raw materials. It accounts for the materials needed for production, adds the desired ending inventory to ensure future production needs are met, and subtracts the beginning inventory to avoid over-purchasing.

2. Raw materials needed to meet the production schedule - desired ending inventory of raw materials - beginning inventory of raw materials.

   • This option incorrectly subtracts the desired ending inventory, which would result in purchasing fewer materials than needed to meet production and inventory goals.

3. Raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials.

   • This option also incorrectly subtracts the desired ending inventory and adds the beginning inventory, which would not accurately reflect the required purchases.

4. Raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.

   • This option incorrectly adds the beginning inventory, which would result in purchasing more materials than necessary.

In summary, the correct approach is to ensure that the purchases cover the production needs and desired ending inventory while accounting for what is already available in the beginning inventory.