Question

Beginning food inventory for the Ace Restaurant Company was $6,500, food inventory purchases for the period were $19,450, and ending inventory for the period was $4,300. Food transferred to the Bar valued $1,200, Wine and Liquor transferred to the kitchen was $1,800, promotional meals equaled $900, and employee meals totaled .03 percent of cost of food used. Food Sales for the period were $89,000

1) What was the dollar amount for the total food available for sale for this period?

2) What was the total cost of food used for this period?

3) What was the total cost of food sold?

4) What was the food cost as percentage of food sales for the period?

5) What was the gross profit for food sales for the period? 6) What was the gross profit as a percentage of sales for the period?

Answer 1

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	Beginning Inventory	6500
	add: Purchases	19450
1	Food available for sale	25950
	Less: Ending Inventory	4300
2	Cost of food used	21650
	Less:
	Transfer to Bar	1200
	Transfer to Kitchen	1800
	Promotional Meals	900
	Employee Meal (0.03%*21650)	6.495
3	Cost of Foods Sold	17744
4	%Cost of Food	17744/89000	19.94%
5
	Food Sale	89000
	Less: Cost of Food Sold	17744
	Gross Profit	71256
6	Gross Profit %	71256/89000	80.06%