Garnet Company Inventory Analysis: Cost of Goods Available for Sale

How much inventory available for sale did Garnet Company have?

Based on the data provided, what was the total inventory available for sale for Garnet Company?

Answer:

The total inventory available for sale for Garnet Company was $2,000.

Garnet Company's inventory available for sale can be calculated using the formula for the cost of goods available for sale: Cost of goods available for sale = Beginning inventory + Purchases.

We can rearrange this formula to solve for purchases: Purchases = Cost of goods available for sale - Beginning inventory.

With the given information of beginning inventory of $300, ending inventory of $200, and cost of goods sold amounting to $1,600, we can calculate the purchases as follows:

Purchases = Cost of goods sold - Decrease in inventory.

Purchases = $1,600 - ($200 - $300).

Purchases = $1,600 + $100.

Therefore, the inventory available for sale was $300 + $1,700 = $2,000.