Chapter 9

PLEASE SHOW ALL YOUR WORK WHERE APPLICABLE

Questions and Problems

1. (2) Following the format illustrated in Figure 9.2, use the following information to determine food cost, food sales, and food cost percent today and to date for the Magic Inn for the period September 4-9.

Date	Directs	Stores	Adjustments	Total Cost	Total Sales	Food Cost %
Added to Cost	Subtracted from Cost	Today	To Date	Today	To Date	Today	To Date
9/4	400	500	0	50			2550	2550
9/5	150	325	0	0			1500
9/6	350	550	60	0			2850
9/7	200	400	0	0			2850
9/8	450	450	0	40			3325
9/9	50	290	0	10			1300

1. (6)For each of the following examples, use the information given to find the book value of the closing inventory and the dollar difference between book and actual inventory for the month.

	a.	b.	c.
Opening Inventory	$ 400.00	$2,184.00	$ 4,129.88
+ Purchases	1,200.00	6,327.00	11,623.71
-Issues	900.00	6,498.00	12,395.62
=Book Value
Actual Value	600.00	1912.00	2673.47
Difference

1. (7) Using information from each of the examples in Question 2, determine the difference between book and actual closing inventory figures as a percentage of issues.

a.	b.	c.

1. (8) Given the dollar differences determined in Question 3 and the percentages determined in Question 3, which of the three examples in Question 3, if any, bear closer examination by a manager? Justify your answer.

1. (9) Assuming that one or more of the examples in Question 3 needs closer examination, explain in detail how that examination should proceed. If you were manager, what steps would you take?

Chapter 9

PLEASE SHOW ALL YOUR WORK WHERE APPLICABLE

Questions and Problems

1. (2) Following the format illustrated in Figure 9.2, use the following information to determine food cost, food sales, and food cost percent today and to date for the Magic Inn for the period September 4-9.

Date	Directs	Stores	Adjustments	Total Cost	Total Sales	Food Cost %
Added to Cost	Subtracted from Cost	Today	To Date	Today	To Date	Today	To Date
9/4	400	500	0	50			2550	2550
9/5	150	325	0	0			1500
9/6	350	550	60	0			2850
9/7	200	400	0	0			2850
9/8	450	450	0	40			3325
9/9	50	290	0	10			1300

1. (6)For each of the following examples, use the information given to find the book value of the closing inventory and the dollar difference between book and actual inventory for the month.

	a.	b.	c.
Opening Inventory	$ 400.00	$2,184.00	$ 4,129.88
+ Purchases	1,200.00	6,327.00	11,623.71
-Issues	900.00	6,498.00	12,395.62
=Book Value
Actual Value	600.00	1912.00	2673.47
Difference

1. (7) Using information from each of the examples in Question 2, determine the difference between book and actual closing inventory figures as a percentage of issues.

a.	b.	c.

1. (8) Given the dollar differences determined in Question 3 and the percentages determined in Question 3, which of the three examples in Question 3, if any, bear closer examination by a manager? Justify your answer.

1. (9) Assuming that one or more of the examples in Question 3 needs closer examination, explain in detail how that examination should proceed. If you were manager, what steps would you take?