Output: (net material quantity ÷ raw material quantity) × 100%
Net material cost: raw material price ÷ net material rate = net material price.
Gross profit margin = (selling price-cost price)/selling price
Gross profit margin = sales gross profit margin/net sales * 100%
These include:
Gross profit margin = net sales-cost of sales
Net sales = merchandise sales revenue-sales returns and discounts
Cost of sales = purchase price+sales expenses.
Ending balance inventory cost = opening balance inventory cost+current purchase cost-current sales cost.
This method is often used in commodity wholesale to calculate the current commodity sales cost and ending inventory cost for enterprises. Generally speaking, the gross profit margin of similar goods in commodity circulation enterprises is roughly the same, and the use of gross profit margin method can reduce the workload.