Less: Employee meals 2,000 0 Cost of goods sold 132,000 25,000 Gross Profit 268,000 220,000 Expenses: Payroll and related expenses 190,000 145,000 Other expenses 60,000 30,000 Total expenses 250,000 175,000 Departmental income 18,000 45,000 Required: 1.Calculate the 2020 food inventory turnover for the John and John Hotel 2.Calculate the 2020 beverage inventory turnover for the John and John Florence Hotel 3.From a manager’s point of view, what would be the ideal food inventory turnover?
The condensed food and beverage department statement of the John and John Florence Hotel, with food and beverage operations for 2020 shown separately, is presented below.
|
|
Food |
Beverage |
|
Sales |
400,000 |
245,000 |
|
Beginning Inventory |
12,000 |
6,000 |
|
Purchases |
130,000 |
25,000 |
|
Less: Ending Inventory |
8,000 |
6,000 |
|
Cost of goods used |
134,000 |
25,000 |
|
Less: Employee meals |
2,000 |
0 |
|
Cost of goods sold |
132,000 |
25,000 |
|
Gross Profit |
268,000 |
220,000 |
|
Expenses: |
|
|
|
Payroll and related expenses |
190,000 |
145,000 |
|
Other expenses |
60,000 |
30,000 |
|
Total expenses |
250,000 |
175,000 |
|
Departmental income |
18,000 |
45,000 |
Required:
1.Calculate the 2020 food inventory turnover for the John and John Hotel
2.Calculate the 2020 beverage inventory turnover for the John and John Florence Hotel
3.From a manager’s point of view, what would be the ideal food inventory turnover?
4.From an owner’s point of view, what would be the ideal beverage inventory turnover?
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