Beginning food inventory for the Ace Restaurant Company was $6,500, food invento

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?

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. 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%

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