Question

Hula’s Heavyweights, Inc., is a company that manufactures forklifts. During the year, Hula’s purchased $1,450,000 of direct materials and placed $1,500,000 worth of direct materials into production. Hula’s beginning balance in the Materials Inventory account was $320,000. What is the ending balance in Hula’s Materials Inventory account?

Answer 1

Answer:

Ending Inventory = $ 270,000

Explanation:

Hula’s Heavyweights, Inc.

Forklifts Manufacturers

Ending Balance In Inventory Account

Hula's beginning Balance                   = $ 320,000

Add Direct Materials Purchased =       $ 1,450,000

Material Available for use=                   $ 1770,000

Less Direct  Material issued for production = $ 1500,000

Ending Balance  in Inventory  Account = $ 270,000

The ending inventory of Hula's Heavyweight , Inc., is $ 270,000