Gross sales $1,000,000 Net sales 900,000 Freight-in 10,000 E inventory 200,000 Gross profit margin 40% ? c of g available for sale is

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=()                                            =