1.ABC hotel is a 390 room economy hotel in downtown st. louis. After taking phys
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Question
1.ABC hotel is a 390 room economy hotel in downtown st. louis. After taking physical inventory of the laundry chemicals on may 31 the assistant controller found that:
15 cases of detergent at $90 each
15 cases of neutralizer at $65 each
16 cases of softner at $31 each
7 pairs of bleach st $7.50 each
1 bucket of starch at $13.50 each.
In the laundry room...
5.75 cases of detergent
2.25 cases of neutralizer
8.50 cases of softner
0.50 pails of bleach
0.25 buckets of starch
The beginning inventory for laundry supplies on may 1st was $6,051.75. Purchase of laundry chemicals on May 9 totaled $890.15. The hoel sold 9,067 rooms for the month at an average daily rate of $65.10. Please calculate the laundry chemical cost percentage for the month.
2. Please calculate the net food cost percentage for the food department of a hotel for the month of may. The total food sales revenue for may was $191,118. The following information has been gathered:
begginning inventory on may 1st was $6932
purchases in may totaled $12,883
food transfered from the main storeroom was $61,315
food transfered to other outlet was $114
entertainment and promotion checks totaled $2010
management signed checks were $691
documented food spoilage was $139
food for employees meals was $5795
happy hour hors d' oeuvres was $2040
ending inventory on may 31 was $6318
Explanation / Answer
Particulars Working Amount Total Revenue from rooms 9067 X $65.10 = $590,261.70 Closing Stock as on 31st May 15 cases of detergent at $90 each 15 X $90.00 = $1,350.00 15 cases of neutralizer at $65 each 15 X $65.00 = $975.00 16 cases of softner at $31 each 16 X $31.00 = $496.00 7 pairs of bleach st $7.50 each 7 X $7.50 = $52.50 1 bucket of starch at $13.50 each. 1 X $13.50 = $13.50 $2,887.00 WIP Stock ad on 31st May* 5.75 cases of detergent 5.75 X $90.00 = $517.50 2.25 cases of neutralizer 2.25 X $65.00 = $146.25 8.50 cases of softner 8.5 X $31.00 = $263.50 0.50 pails of bleach 0.5 X $7.50 = $3.75 0.25 buckets of starch 0.25 X $13.50 = $3.38 $934.38 Total Closing Stock as on 31st May $3,821.38 Consumption of Laundry Supplies Opening Stock as on 1st May $6,051.75 Add: Purchases during May $890.15 Less: Closing Stock as on 31st May $3,821.38 (As per calculation above) Consumption of Supplies/ $3,120.53 Cost of Laundry Chemicals % cost to revenue $3,120.53 / $590,261.70 = 0.53% *Assumption 1: WIP has been valued at the same rates as that of the Store Stock assuming no value addition in the raw stock being on the Laundry Room Answer 2 Particulars Amount Consumption of Food material Opening Stock as on 1st May $6,932.00 Add: Purchases during May $12,883.00 Less: Closing Stock as on 31st May $6,318.00 (As per calculation above) Consumption of Supplies/ $13,497.00 Cost of Laundry Chemicals Less: Employee Meals Cost $5,795.00 Net Cost of Food for Food Department $7,702.00 Total Revenue from Food $191,118.00 Add: entertainment and promotion checks $2,010.00 Add: management signed checks $691.00 Revenue for Food department * $193,819.00 % of Food cost to Revenue for Food deptt. $7702/$193819 3.97% *Assumption1 Checks for entertainment & promotion and management signed checks are considered as revenue for the food departement as the cost of such food is already included in the consumption cost of food *Assumption2 Food transferred to other outlet is also cost related to Food department *Assumption3 Happy hour hors d' oeuvres are also cost related to Food department and already included in the consumption as calucated above
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