Question
Beginning inventory is &12,000 the purchase are $20,000 the ending inventory is $14,000 and other credits are $2,000 what is the actual food cost
Answer
16000
- Calculate Cost of Goods Sold. A: Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory = 12000 + 20000 - 14000 = 18000.
- Calculate Actual Food Cost. A: Actual Food Cost = Cost of Goods Sold - Other Credits = 18000 - 2000 = 16000.