Question

Assume Smart Touch Learning had 2 tablets in its beginning​ inventory, each with a cost of $ 300. On January ​5, Smart Touch Learning purchased 5 tablets at a cost of $ 310 ​each, and on January ​15, Smart Touch learning sold 3 tablets to a customer. What would be the​ company's cost of goods available for sale during this period of​ time?

Answer 1

The total cost of goods available for sale for Smart Touch Learning during the period is $2150, which includes the beginning inventory worth $600 and purchases totaling $1550.

Step-by-step explanation:

When calculating the cost of goods available for sale, we take into account both the beginning inventory and the purchases made during the period before any sales are deducted. In this scenario, Smart Touch Learning had 2 tablets in the beginning inventory, each at a cost of $300, totaling $600. During the period, they also purchased 5 additional tablets at a cost of $310 each, totaling $1550. Therefore, the total cost of goods available for sale during this period would be the sum of the beginning inventory and the purchases.

Cost of goods available for sale = Beginning Inventory + Purchases = $600 (beginning inventory) + $1550 (purchases) = $2150.