Sales $100,00 Ending
Inventory 6,000
Beg, inventory $8,000
Cost of goods sold 60,000
With the above info, what was the gross margin and what was the total amount of merchandise that was purchased for the year?


Any help would be wonderful.

The Gross margin equals (Sales minus Cost of Sales) which is in our case $ 40,000 (100,000-60,000)

To obtain the amount of purchased merchandise you need to set the Cost of sales formula

Beginning inventory 8,000

Plus: Purchases Unknown

Minus: Ending Inventory 6,000
Equals: COS 60,000

The purchases would be $58,000 (60,000+6,000-8,000)

Quote:

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Originally Posted by angle1

Sales $100,00 Ending
inventory 6,000
Beg, inventory $8,000
Cost of goods sold 60,000
With the above info, what was the gross margin and what was the total amount of merchandise that was purchased for the year?


Any help would be wonderful.

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Gross Margin = Sales-Cost of Goods Sold
Hence Sales(100,000-60,000)=Gross Profit($40,000)