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Harry’s annual inventory count took place on 6 Jan 20X6.
The value of inventory on this date was $ 32,780.
During the period from 31 Dec 20X5 to 6 Jan 20X6, the
following events occurred:Sales $8,600
Purchases $4,200
The value of inventory at 31 Dec 20X5 was $ 34,600.
What is the gross margin of Harry?The Answer is 30%.
Solution :
Sales at Selling price $8,600
Sales at Cost price $6,020
Profit $2,580(2580/8600)*100 = 30%
Can you please explain to me how do we get the Sales at Cost Price?
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