1. Given the following informaion, determine beverage cost in each of the three

Question

1. Given the following informaion, determine beverage cost in each of the three bars: Storeroom Inventory Data Opening Inventory Purchases Closing Inventory Art's $ 5,000 $ 8,000 $ 7,000 Ben's 8,325 10,666 9,327 Carol's 4,872 7,454 3,856 Bar Data Opening Inventory Closing Inventory Art's $ 1,000 $1,000 Ben's 2,325 2,050 Carol's 1,867 1,988 Art's Beverage Cost: Ben's Beverage Cost: Carol's Beverage Cost: 2. Using the costs determined in Question 1, calculate beverage cost percent if a. The sales figure in Art's is $20,000. b. The sales figure in Ben's is $41,412.50. c. The sales figure in Carol's is $29,817.85. 3. Using the figure from Questions 1 and 2, as well as the following adjustments, calculate adjusted cost of beverages sold, following the format provided in Figure 16.1, and then calculate beverage cost percent based on adjusted costs. Art's Food to bar (difercts) $ 200 Issues from food storeroom 150 Mixers 475 Cooking liquor 110 Managers' drinks 120 Special promotions 160 Ben's Mixers $ 925 Food to bar (directs) 500 Cooking liquor 335 Special promotions 320 Carol's Issues from food sotreroom $ 235 Special promotions $ 285 Managers' drinks 165 Mixers 695 Cooking liquor 185 1. Given the following informaion, determine beverage cost in each of the three bars: Storeroom Inventory Data Opening Inventory Purchases Closing Inventory Art's $ 5,000 $ 8,000 $ 7,000 Ben's 8,325 10,666 9,327 Carol's 4,872 7,454 3,856 Bar Data Opening Inventory Closing Inventory Art's $ 1,000 $1,000 Ben's 2,325 2,050 Carol's 1,867 1,988 Art's Beverage Cost: Ben's Beverage Cost: Carol's Beverage Cost: 2. Using the costs determined in Question 1, calculate beverage cost percent if a. The sales figure in Art's is $20,000. b. The sales figure in Ben's is $41,412.50. c. The sales figure in Carol's is $29,817.85. 3. Using the figure from Questions 1 and 2, as well as the following adjustments, calculate adjusted cost of beverages sold, following the format provided in Figure 16.1, and then calculate beverage cost percent based on adjusted costs. Art's Food to bar (difercts) $ 200 Issues from food storeroom 150 Mixers 475 Cooking liquor 110 Managers' drinks 120 Special promotions 160 Ben's Mixers $ 925 Food to bar (directs) 500 Cooking liquor 335 Special promotions 320 Carol's Issues from food sotreroom $ 235 Special promotions $ 285 Managers' drinks 165 Mixers 695 Cooking liquor 185

Explanation / Answer

1. The cost of beverage moving from storeroom = opeining stock+purchases-closing stock.

This amount is the amount of beverages used by the bar. Beverage cost = opening inventory of bar+amount of beverages used by the bar - closing inventory of bar

ART's: The cost of beverage moving from storeroom = opeining stock+purchases-closing stock.

= 5000+8000-7000 = $6,000. This amount is the amount of beverages used by the bar. Beverage cost = opening inventory of bar+amount of beverages used by the bar - closing inventory of bar

= 1000+6000-1000 = $6,000

BEN's: The cost of beverage moving from storeroom = 8325+10666-9327 = 9664

Beverage cost = opening inventory of bar+amount of beverages used by the bar - closing inventory of bar

= 2325+9664-2050 = $9,939

Carol's: The cost of beverage moving from storeroom = 4872+7454-3856 = 8470

Beverage cost = opening inventory of bar+amount of beverages used by the bar - closing inventory of bar

= 1867+8470-1988 = $8,349

2.beverage cost percentage = beverage cost/sales

Arts: 6000/20,000 = 30%

Ben's = 9939/41412.50 = 24%

Carol's = 8349/29817.85 = 28%

3. Art's: adjusted cost = cost as calculated in part 1 above+various adjusting costs (like food to bar, mixers, liquors etc.) = 6000+200+150+475+110+120+160 = 7215

adjusted cost percent = adjusted cost/sales = 7215/20000 = 36.08%

Ben's: adjusted cost = cost as calculated in part 1 above+various adjusting costs (like food to bar, mixers, liquors etc.) = 9939+925+500+335+320 = 12019

adjusted cost percent = adjusted cost/sales = 12019/41412.5 = 29.02%

Carols: adjusted cost = cost as calculated in part 1 above+various adjusting costs (like food to bar, mixers, liquors etc.) = 8349+235+285+165+695+185 = 9914

adjusted cost percent = adjusted cost/sales = 9914/29817.85 = 33.25%

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