أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
I agree with Mr. Barkat Ali and Manelle San Luan answer.
If GP margin is 40% then it is equivalent to $360,000 ($900,000*40%), Cost of Goods is $540,000.
Available for sale is $740,000 (COGS + Ending Inventory: $540,000+ $200,000)
Given that the gross margin percentage is 40% of net sales (900,000 X 40%) =$ 360,000, cost of goods sold must be 60% of net sales (900,000 X 60%) = $540,000. Goods available for sale equals cost of goods sold plus ending inventory ($540,000 + $200,000 = $740,000)
C of G available for sale = C of G sold + Ending inventory
(900,000 * 60%) + 200,000 = $740000
Gross Sales $1,000,000.00
Less: Sales returns/ Sales Allowances/ Discounts $100,000.00
Net Sales $900,000.00
Less: Cost of Goods Sold $360,000.00
Gross Profit $540,000.00
Gross Profit Margin =Revenue - COGS / Revenue
Gross Profit Margin = $900,000 - $360,000/ $900,000
Gross Profit Margin =40%
Cost of Goods Sold available for sale =Ending Inventory + COGS
Cost of Goods Sold available for sale =$ 200,000 + $ 360,000
Cost of Goods Sold available for sale = $560,000.00
GROSS PROFIT MARGIN=%
GROSS PROFIT=*.4= COST OF GOODS SOLD = SALES - GROSS PROFIT COST OF GOODS SOLD=() =
