A restaurant has a food cost average of 38 percent. The inventory on August 31 is $11,000 and the inventory on September 30 is $11,965.  The following are transactions for the month of September:   Purchases                                                           $              36,000 Officers’ checks                                                                925  at menu price Employee meals                                                               210  at standard cost Transfer to bar                                                                  90 Transfer from bar                                                             70   Compute the cost of food sold for the month of September if the periodic inventory system is used in the storeroom.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
  1. A restaurant has a food cost average of 38 percent. The inventory on August 31 is $11,000 and the inventory on September 30 is $11,965.  The following are transactions for the month of September:

 

Purchases                                                           $              36,000

Officers’ checks                                                                925  at menu price

Employee meals                                                               210  at standard cost

Transfer to bar                                                                  90

Transfer from bar                                                             70

 

Compute the cost of food sold for the month of September if the periodic inventory system is used in the storeroom. 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education