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Question(s) / Instruction(s):

The budgeted amount of raw materials to be purchased is determined by: 

a)            Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.

b)            Subtracting the beginning inventory of raw materials to the raw materials needed to meet the production schedule.

c)            Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtract the beginning inventory of raw material.

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