Question: BACKGROUND You just opened a new restaurant a few months ago and need to determine your cost of sales and inventory value. Use the information

BACKGROUND You just opened a new restaurant a few months ago and need to determine your cost of sales and inventory value. Use the information provided below to complete the see calculations, then analyze your results.

ASSIGNMENT GUIDELINES 1. Assume you have gathered the following information from your operation for the month of April. - Food Sales = $125,000 - Beverage Sales = $32,000 - Food Cost = $28,000 - Beverage Cost = $5,500 - Beginning Cooking Oil Inventory = 3 jugs @ $12 each - Cooking Oil Purchased = 6 jugs @ $14 each - Ending Cooking Oil Inventory = 4 jugs

2. Calculate the following: - Food Cost Percentage & Beverage Cost Percentage - Total Cost of Sales (as a percentage) - Gross Profit for Food & Beverage (as a dollar amount and as a percentage) - Total Gross Profit (as a dollar amount and as a percentage) - Cooking Oil Inventory Value using FiFo, LiFo, and Weighted - Average Methods

Answer the follow-up questions. Be sure to include the following in your submission:

1. Formula, Calculations & Answer for Food Cost Percentage 2. Formula, Calculations & Answer for Beverage Cost Percentage 3. Formula, Calculations & Answer for Total Cost of Sales (as a percentage) 4. Formula, Calculations & Answer for Gross Profit for Food (as a dollar amount) 5. Formula, Calculations & Answer for Gross Profit for Food (as a percentage) 6. Formula, Calculations & Answer for Gross Profit for Beverage (as a dollar amount) 7. Formula, Calculations & Answer for Gross Profit for Beverage (as a percentage) 8. Formula, Calculations & Answer for Total Gross Profit (as a dollar amount) 9. Formula, Calculations & Answer for Total Gross Profit (as a percentage) 10. If the restaurant has a goal of 23% Total Cost of Sales, what steps should you take to reach that goal? (Be specific!) 11. The Total Gross Profit Percentage might look good. Why shouldn't you get excited quite yet? (Be specific!) 12. Formula, Calculations & Answer for Value of Cooking Oil Inventory using the FiFo Method 13. Formula, Calculations & Answer for Value of Cooking Oil Inventory using the LiFo Method 14. Formula, Calculations & Answer for Value of Cooking Oil Inventory using the Weighted Average Method 15. Based on calculations, which method would you use to calculate your inventory value? Why?

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