In February, a restaurant had a beginning inventory of $85,000, made purchases of $235,000 and had an

Question:

In February, a restaurant had a beginning inventory of $85,000, made purchases of $235,000 and had an ending inventory of $70,000. Employee meal costs for the month were $12,000. Food revenue for the month of February was $800,000. What was the restaurant’s food cost percentage for the month of February?

a. 29.75%

b. 31.25%

c. 32.75%

d. 38.5%

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...