Knowledge Check 01 The purpose of preparing a direct materials budget is to allocate the cost of raw materials to production departments estimate the manufacturing overhead estimate the quantity of raw materials to be purchased estimate the unit cost of direct materials to be purchased Knowledge Check 02 In a direct materials budget, the desired ending raw materials inventory for the year is equal to the beginning balance of accounts payable desired ending raw materials inventory for the last period total merchandise purchased during the year value of raw material used during the year