Question

A bar operation achieved $92,000 in beverage sales for an accounting period. for that period, it had a beginning inventory of $25,000. ending inventory was $22,000 and beverage purchases equaled $20,000. what was the bar's beverage cost percentage for the period?

Answer 1

Answer: The beverage cost perctage is 25%

Step-by-step explanation:

The formula to calculate the Food or Beverage Cost Percentage is (Beginning Inventory + Purchases – Ending Inventory) ÷ Food Sales.

Using our numbers in the formula, it is solved as follows:

Food Cost Percenage = ($25,000 + $20,000 - $22,000) / $92,000

Food Cost Percentage = ($23,000) / $92,000

Food Cost Percentage = 25%