question archive A restaurant records the following data over a month for its food: opening inventory = $31,000; purchases = $88,000; closing inventory = $28,000; transfers in = $800; transfers out = $200; employee meals = $1,500; promotions = $400
A restaurant records the following data over a month for its food: opening inventory = $31,000; purchases = $88,000; closing inventory = $28,000; transfers in = $800; transfers out = $200; employee meals = $1,500; promotions = $400
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A restaurant records the following data over a month for its food: opening inventory = $31,000; purchases = $88,000; closing inventory = $28,000; transfers in = $800; transfers out = $200; employee meals = $1,500; promotions = $400. (There are no steward or grease sales.) What is the cost of food sold for this restaurant?
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Cost of Food Sold = $89700
Step-by-step explanation
Solution:
Basic cost of food:
=opening inv.+Purchases-closing inv.
=$(31,000+88,000-28,000)
=$91,000
Net cost of food :
=basic cost+transferred in - (employee's meal+promotional exp.+transferred out)
=$(91,000+800) - $(1,500+400+200)
=$91,800 - $2,100
Cost of food = $89,700
