Question

How to calculate cost of goods sold with sales and gross profit?

Answer 1

Multiply (1 - expected gross profit %) by sales during the period to arrive at the estimated cost of goods sold. Subtract the estimated cost of goods sold (step #2) from the cost of goods available for sale(step #1) to arrive at the ending inventory.

Answer 2

$\large \green{ \fcolorbox{gray}{black}{ ☑ \: \textbf{Verified \: answer}}}$

Gross profit margin is a measure of a company’s profitability, calculated as the gross profit as a percentage of revenue.

$\sf{ \gray{Gross \: Profit \: Ratio }= \frac{ Gross \: Profit}{ Net \: sales. }}$

$\sf{ \gray{Gross \: Profit \: Ratio} = \frac{ Gross \: Profit} {Net \: Sales}x 100.}$