Question

Beginning Inventory $11,500 Daily Alternative Purchases (+) $1,000 Produce Purchases (+) $550 Protein Purchases (+) $1,000 Dry Goods Purchases (+) $1,000 Total Available = $15,050 Ending Inventory (-) $10,900 Food Cost (COGS) (=) $4,100 Revenue (Sales) (+) $12,500 Food Cost % (=) 32.8% What is the Beginning Inventory for next week? a. $11,500 - beginning inventory is always the same b. $3,500 - this week’s purchases are next week’s beginning inventory c. $12,500 - the revenue is the beginning inventory d. $10,900 - this week’s ending inventory is next week’s beginning

Answer 1

The correct answer is:

b. $3,500 - this week’s purchases are next week’s beginning inventory.

The beginning inventory for the next week is typically what you have left from the previous week plus any new purchases. In this case, it's the beginning inventory of $11,500 plus the daily alternative purchases ($1,000) plus the produce purchases ($550) plus the protein purchases ($1,000) plus the dry goods purchases ($1,000), which adds up to $3,500.