Gross sales 1000000$ net sales 900000$ fright in 10000$ ending inventory 200000$ gross margin profit 40%

Answer option >>>>>>>>>>>>>>>>>>>>>>>   A-550000

D->>>>>>>>>>>>800000

COS OF SOLD GOODS =1000000 *60%=600000 $

cost of good available for sale = COS OF SOLD GOODS +ENDING INVENTORY 

                                                           =600000+200000=800000 $

 

 

G/P =900,000 ×40% =360,000 Net sales - gross profit = cost of goods sold =900,000 -360,000=540,000 COGS =540,000 COGS + Ending inventory = merchandise available for sale =540,000 +200,000 =740,000 cost of merchandise available for sale =740,000 So, choice C is the answer

(C) is Ans.

Please to review this ans.

 

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)

Option C