Question

Net Food Sales for a month were $84,400. The cost of food purchased during the month was 3 times the beginning inventory. Beginning food inventory was $14,800 and ending inventory is $12,200. The restaurant served 300 employee meals during the month. Employee meals cost the restaurant approximately 75 cents per meal. The kitchen sent 2 cases of oranges to the bar during the month. One case of oranges cost $25. The managers issued $250 of complimentary food to guests. The bar sent 2 cases of wine to the kitchen for cooking, one case of red wine and one case of white wine. The red wine cost $78 and the white wine cost $78. Based on this information for the month calculate the following: Cost of Food Purchased: $______________, Cost Food Used: $_____________ Cost of Food Sold: $___________ and the Cost of Food as a Percentage of Food Sales: ____________% (round to the nearest whole number)

		Cost of Food Purchased: $44,400 Cost Food Used: $47,000 Cost of Food Sold: $46,631 Cost of Food as a Percentage of Food Sales: 55%
		Cost of Food Purchased: $36,000 Cost Food Used: $46,631 Cost of Food Sold: $47,000 Cost of Food as a Percentage of Food Sales: 54%
		Cost of Food Purchased: $59,200 Cost Food Used: $47,000 Cost of Food Sold: $44,400 Cost of Food as a Percentage of Food Sales: 53%

Answer 1

1)Cost of Food Purchased

= 3 times the beginning inventory

Beginning Inventory = $14800

Cost of Food purchased = $14800*3= $44,400

2) Cost of Food used  

Opening Inventory $14,800

Add: Cost of Food purchased $44,400

-------------

$59,200

Less: Closing Inventory $ 12,200

-------------

Cost of Food used $ 47,000

--------------

3) Cost of Food Sold

Cost of food used $ 47,000

Less: Employees Meal Cost (300*75 cents) $225

Less: Cost of 2 cases of Oranges(2*$25) $ 50

Less:Complementary food to guests $250

----------- $525

---------------

$46,475  

Add:Cost of 2 cases of wine $ 156

---------------

Cost of Food sold $ 46,631

----------------

4)Cost of Food Sold as % of Food Sales

Cost of Food sold $46,631

Food Sales $84,400

Cost of Food Sold as % of Food Sales 55.25%