MGMT1050 Mark: /22 Application Exercise Activity #2 Show all your work and round to 2 decimal places for full marks Part 1: Calculating Food Cost 1. Given the following data, determine the food cost percentage: (2 marks) Opening inventory = $2,675 Purchases = $63,282 Closing inventory $3,169 Sales = $245,179 Part 2: Calculate Cost of Food Issued: (6 marks) 2. Opening Inventory = $11,583 Purchases = $26,568 Closing Inventory = $11,271 Food Issued: $ Cost of 3. Opening Inventory = $64,871.08 Purchases = $18,135.10 Closing Inventory = $19,754.77 Food Issued: $ Cost of 4. Opening Inventory = $2,978 Purchases = $9,300 Closing Inventory = $1,940 Food Issued: $ Cost of Part 3: Calculate Food Cost Percent: (4 marks) 5. Food cost: $6,767 Sales: $27,539 What is the food cost percentage? 6. Menu item cost: $2.59 Selling price of an item: $7.99 What is the food cost percentage for the menu item? Part 4: Calculate Inventory Turnover Rate: (4 marks) The following are inventory figures for a restaurant: Physical inventory, March 1 $3,900 Physical inventory, March 31 $4,500 Total invoices dated March 1-31 $17,000 1. What was the monthly cost of food sold in dollars for this operation? 2. What was the inventory turnover rate for March? Part 5: Case Study: (6 marks) Bruce was recently hired as a receiving clerk for the White Pearl restaurant. He has a PO for three bags (40 pounds each) of Russet potatoes, 9 boxes of "Perry" brand napkins (1,000 napkins per box), and three packs of beef loins (50 pounds per pack). Bruce went to the receiving dock excited about the first receiving task at his new job. He weighed one of the bags of potatoes and the weight was correct. He decided that all bags looked alike and did not weigh the other two bags. He also did not check the label of potatoes, which read "Yukon Gold Yellow Potatoes." Then Bruce moved to the meat. He did not remove the meat packs from their boxes. Instead, he weighed all three packs and the boxes together and recorded the weight as net product weight. There was also a bloody leak under one of the boxes but the pack looked intact to him. The delivery driver was in a hurry to make another delivery, so Bruce let the driver help with moving items into the storage area. The invoice indicated six boxes of "Curly" napkins (at 1,500 napkins per box). Bruce signed the invoice and waved goodbye to the driver. Content with his first receiving job, Bruce recorded the items into the system and sent a copy of the invoice to accounting. 1. Identify mistakes Bruce made during the receiving process. 2. What are some of the corrective actions that Bruce could have undertaken during the delivery of items? Explain