Problem 1
Ending Inventory (Food): $68,000
Ending Inventory (Beverage): $23,470
Food Purchases: $305,000
Beverage Purchases: $24,700
Beginning Inventory (Food): $72,400
Beginning Inventory (Beverage): $19,700
Transfers to Bar: $3,870
Beverage Theft/Pilferage: $510
Foo
Food Over-Portioning Expense: $615
Transfers from Bar: $4,100
Complimentary Food: $2,160
Complimentary Beverages: $890
Employee Menu Cost: $11,225
Food Revenues: $878,000
Beverage Revenues: $116,500
Total Food Cost:$72,400+$305,000+$3,870 = $313,270
Total Beverage Cost: ($19,700+$24,700+$4,100)- $23,470 =$25,030.00
Net Cost of Sales (Food) = $313,270-$878,000 =$-564,730.00
Net Cost of Sales (Beverage) = $25,030-$116,500 =$-91,470.00
Total Net Cost of Sales: -564,730+-91,470=-656,200
Percentage Cost of Sales = (-656,200/878,000+116,500)*100= -52.09%
Problem 2
Food Beverage
$110,000 $38,500
$98,470 $41,000
$488,000 $161,000
$1,268,000 $742,000
110,000 38,500
480,000 161,000
98,470 41,000
499,530 158,500
Net Cost for Food: $499,530+$5,170+$7,640+$2,290-$6,850= $517,780
Net Cost for Beverage =$158,500+$840=$159,340.00
Food Over: $517,780-$499,530=$18,250.00
Beverage Over: $159,340-$158,500=$840.00
Unadjusted cost for food: $499,530
Unadjusted cost of beverage: $158,500
Net Cost of Food: $517,780
Net Cost of Beverage: $159,340
Food over: $18,250
Beverage Cost: 840
Problem 3
A. FIFO: the value of ground beef at the end of January using the FIFO method is $280
B. LIFO: the value of ground beef at the end of January using the LIFO method is $300
C. Actual Cost: the value of ground beef inventory at the end of January using the actual cost method is $280
D. The weighed cost: the value of ground beef inventory at the end of January using the weighted method is: $292.
Problem 4
Date Issues Directs Total Cost
7/1 $350 $210.00 $560.00
7/2 $870.00 $320.00 $1,190.00
7/3 $805.00 $290.00 $1,095.00
7/1 formulas
1. 350.00+210.00=560
2. 560.00-110.00=450
3. 2400.00+450.00=2,850
7/2 formulas:
1. 870+320=1,190
2. 1190.00-85.00=1,105
3. 2900.00+1105.00=4,005
7/3
1. 805.00+290.00=1,095
2. 1095.00-50.00=1,045
3. 3100.00+1045.00=4,145
Problem 5
Dates Issues Directs Trans to Bar
8/1 $410 $205.00 $71.00
8/2 $370 $175.00 $45.10
8/3 $520 $199.00 $50.70
Date Issues Directs Total cost
8/1 410 $205 746
8/2 370 175 641.1
8/3 520 199 810.3
The manager should take action to reduce the food cost percentage, as all three days calculations exceed the desir
Problem 6
Bar 1 Bar 2 Beverage cost
Date (1) Cost (2) Revenue (3) Cost (4) Revenue (5) Today (6) To date (7)
7/1 $110.00 $470.00 $210.00 $840.00
7/2 $180.00 $710.00 $295.00 $1,280.00
7/3 $161.00 $512.00 $300.00 $950.00
7/4 $98 $480.00 $145.00 $615.00
Cost percentage for Bar 1
Cost Percentag
2/3*100=66.667
Cost Percentage for Bar 2
Cost Percentage: 4/5*100=80
Bar 1: 66.67%
Bar 2: 80%
Problem 7
Bartender 1 Bartender 2
Date Bar % Date Service %
7/1 Main 24.1 7/1 Service 22.3
7/2 Main 23.8 7/2 Service 22.3
7/3 Main 23.4 7/3 Service 21
7/4 Main 24 7/4 Service 23
7/5 Main 24.6 7/5 Service 21.2
An acceptable reason for bartender 1 having a higher cost percentage could be that bartender 1 services more exp
An unacceptable reason for bartender 1 having a higher beverage cost percentage could be a miscalculation or err
cost method is $280
weighted method is: $292.50
Daily Food Cost
Add Adjust Less Adjust Today
$110.00 $120.00 $450.00
$85.00 $55.00 $1,105.00
$70.00 $50.00 $1,045.00
Trans from Bar Employee Meals Revenue
$60.00 $81.00 $1,850.00
$51.00 $65.75 $1,790.00
$40.60 $68.00 $2,150.00
Add adjust Less adjust Daily Food Food revenue
81 Today To date Today To date
65.75 665
68 575.35
742.3
culations exceed the desired 27.08%
Beverage revenue Beverage cost percentage
Today (8) To date (9) Today (10) To date (11)
nder 1 services more expensive drinks
be a miscalculation or error in the percentage calculation
ily Food Cost Food Revenue Food Cost%
To Date Today To Date Today To Date
$2,850.00 $2,400.00
$4,005.00 $2,900.00
$4,145.00 $3,100.00
Food Cost %
Today To date
35.95% 35.95% 27.08
32.14% 32.14% 27.08
34.52% 34.52% 27.08