Problem 1

Use the following data to answer the question below about actual food and beverage costs for the Marina Bay Grill for July:

Ending Inventory (Food)

Ending Inventory (Beverage)

Food Purchases

Beverage Purchases

Beginning Inventory (Food)

Beginning Inventory (Beverage)

Transfers to Bar

Beverage Theft/Pilferage

Food Over-Portioning Expense

Transfers from Bar

Complimentary Food

Complimentary Beverages

Employee Meal Cost

Food Revenues

Beverage Revenues

$68,000

$23,470

$305,000

$24,700

$72,400

$19,700

$3,870

$510

$615

$4,100

$2,160

$890

$11,225

$878,000

$116,500

What is the net cost of sales for food and beverage? Indicate dollar and percentage costs.

Problem 2

a. What are the unadjusted food and beverage costs for the Hillside Resort, given the following information for April? (Express your answer in dollars and percentages.)

Food

Beginning Inventory

Ending Inventory

$110,000

$98,470

Beverage

$38,500

$41,000

Purchases

$488,000

Revenues

$1,268,000

$161,000

$742,000

b. The following additional information about April's food and beverage costs is also available. Use this data to calculate net costs of sales for food and beverage. (Express your answer in dollars and percentages.)

Transfers to Bar

Transfers from Bar

Employee Meals

Complimentary Meals

$5,170

$6,850

$7,640

$2,290

Complimentary Beverages

$840

c. By what amounts are the food and beverage costs over- or understated, based on comparisons between the unadjusted and net costs?

Problem 3

The Pleasant Meadows Restaurant uses frozen ground beef packed in 10-pound poly bags for many of its soup and casserole items. The per-bag purchase cost of all bags received in January was $30. Use the following information to calculate the value of ground beef inventory at the end of January:

Inventory Count

Ending Inventory

January 1

17 bags

$28.00

January 31

28 bags

$30.00

There were 37 bags purchased (delivered) during January.

Calculate the value of ground beef inventory using the FIFO method.

Calculate the value of ground beef inventory using the LIFO method

Calculate the value of ground beef inventory using the actual cost method. (A proper inventory rotation system was in use.)

Calculate the value of ground beef using the weighted average method.

Problem 7

What is the beverage cost percentage for Bartenders 1 and 2, given the information in the following bartender performance review form? What is the average beverage cost for the five days that are identified?

Bartender #1

Bartender #2

Date

7/1

712

7/3

714

715

Bar

Main

Main

Main

Main

Main

%

24.1

23.8

23.4

24.0

24.6

Date

7/1

712

713

714

7/5

Service

Service

Service

Service

Service

Service

%

22.3

22.3

21.0

23.0

21.2

What is one example of an acceptable reason that Bartender 1 could have a higher beverage cost percentage than Bartender 2?

What is one example of an unacceptable reason for the higher beverage cost percentage of Bartender 1?

If prices are the same in both bars, what is an unacceptable reason for the lower beverage cost percentage of Bartender 2?