Question

The Food and Beverage department at the Fox Hills Country Club is an important part of the Club’s overall profit structure. February food sales were $310,450 and beverage sales were $49,875. Because they represent such significant costs, Frankie Watson, the Club’s Food and Beverage Director, keeps a careful watch on her food and beverage cost percentages. Using the following information for February that Frankie has recorded, help her calculate the answers to the questions that follow.

Given Information:
Beginning Food Inventory	$5,410
Food Purchases	$72,385
Ending Inventory	$5,772
Transfers “Out of Kitchen”	$922
Transfers “Into Kitchen”	$1,346
Employee Meals	$1,622
Calculate the following:
Beginning Inventory
Purchases
Food Available for Sale
Ending Inventory
Cost of Food Consumed
Transfers Out
Transfers In
Employee Meals
Cost of Food Sold
Food Sales
Food Cost %
Given Information:
Beginning Beverage Inventory	$1,099
Beverage Purchases	$12,588
Ending Beverage Inventory	$1,244
Transfers “Out of Bar”	$1,346
Transfers “Into Bar”	$922
Calculate the following:
Beginning Inventory
Purchases
Beverage Available for Sale
Ending Inventory
Transfers Out
Transfers In
Cost of Beverage Sold
Beverage Sales
Beverage Cost %

a. What was the amount of Frankie’s Cost of Food Consumed in the month of February?

b. What was the amount of Frankie’s Cost of Food Sold in the month of February?

c. What was Frankie’s Food Cost % in the month of February?

d. What was the amount of Frankie’s Cost of Beverage Sold in the month of February?

e. What was Frankie’s Beverage Cost % in the month of February?

Answer 1

Beginning Inventory 5,410

Purchases 72,385

Food Available for Sale 77,795

Ending Inventory ( 5,772)

Cost of Food Consumed 72,023

Transfers Out ( 922)

Transfers In 1,346

Employee Meals ( 1,622)

Cost of Food Sold 70,825

Food Sales 310,450

Food Cost % 22.8%

Food Cost % = (70,825/310,450)*100

Beginning Inventory 1,099

Purchases 12,588

Beverage Available for Sale 13,687

Ending Inventory ( 1,244)

Transfers Out ( 1,346)

Transfers In 922

Cost of Beverage Sold 12,019

Beverage Sales 49,875

Beverage Cost % 24.1

Beverage Cost % = (12,019/49,875)*100