food cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gary is the cafeteria manager at the Sunshine Community Hospital. He is reviewing the sales and cost records for the months of June and July. His manager has provided him with food and labor cost control standards for the cafeteria so that Gary can accurately analyze this information.

Sunshine Community Hospital Public Cafeteria Cost Control Standards

Food cost percentage should be lower than 32 percent.

Labor cost percentage should be between 24 and 26 percent.

 

Table is attached.

Given the information provided, please answer the following questions:

 

  1. What is the cafeteria’s food cost for June?

 

 

 

  1. What is the cafeteria’s food cost For July?

 

 

 

  1. What is the cafeteria’s food cost percentage for June?

 

 

 

  1. What is the cafeteria’s food cost percentage for July?

 

 

 

  1. What is the cafeteria’s labor cost for June?

 

 

 

  1. What is the cafeteria’s labor cost for July?

 

 

 

  1. What is the cafeteria’s labor cost percentage for June?

 

 

 

  1. What is the cafeteria’s labor cost percentage for July?

 

 

 

  1. Which costs were outside acceptable standards during for June? For July?

 

 

 

  1. What recommendations should Gary propose to control costs in the upcoming months?
inbo
beal
Text
TEXT
valenciacollege.instructure.comcours.
Sunshine Community Hospital Public Cafeteria Sales and Cost Recor
June
July
Sales
$19,700 $16,900
Opening
June 1 July 1
inventory
13,000 14,105
Closing
June 30 July 31
inventory
14,105 17,105
Food purchases
8,000
6,500
Labor expenses
5,000 5,000
Transcribed Image Text:inbo beal Text TEXT valenciacollege.instructure.comcours. Sunshine Community Hospital Public Cafeteria Sales and Cost Recor June July Sales $19,700 $16,900 Opening June 1 July 1 inventory 13,000 14,105 Closing June 30 July 31 inventory 14,105 17,105 Food purchases 8,000 6,500 Labor expenses 5,000 5,000
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Follow-up Question

What recommendations should Gary propose to control costs in the upcoming months?

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Follow-up Question

Which costs were outside acceptable standards during for June? For July?

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Follow-up Question

What is the cafeteria’s labor cost for June?

 

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Follow-up Question

What is the cafeteria’s food cost percentage for July?

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Follow-up Question
  1. What is the cafeteria’s labor cost percentage for June?

 

 

 

 

  1. What is the cafeteria’s labor cost percentage for July?

 

 

 

  1. Which costs were outside acceptable standards during for June? For July?

 

 

 

 

Solution
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Follow-up Question

 What is the cafeteria’s food cost percentage for July? 

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