Respuesta :
In a manufacturing company, the direct materials budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
The production budget, which establishes the number of products that must be produced, is created by combining the sales estimate and the projected amount of finished goods inventory that will be on hand . The production budget is manufacturing up mostly of three different categories of expenses: direct material costs, the direct labour costs, and overhead costs. Examples include payments due for rent, utilities, insurance, office staff salaries, and supplies, among the others.
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