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31 January, 13:09

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?

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  1. 31 January, 15:35
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    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
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