Bullwinkle's Direct Material Inventory balance at the end of 2009 and 2010 was $200,000 and $350,000, respectively. During 2010, Bullwinkle transferred $700,000 of direct materials to Work in Process Inventory. How many dollars of direct materials did Bullwinkle buy during 2010?

Question

Quizplus · Accepted Answer

To find the amount of direct materials Bullwinkle bought during 2010, we use the formula: Beginning Inventory + Purchases - Ending Inventory = Materials Used. We know the Materials Used ($700,000) and the Beginning ($200,000) and Ending Inventories ($350,000). Rearranging the formula to solve for Purchases gives us: Purchases = Materials Used + Ending Inventory - Beginning Inventory = $700,000 + $350,000 - $200,000 = $850,000.

Bullwinkle's Direct Material Inventory Balance at the End of 2009