Question

Urdance with the USALI. Wunts than should be shown on this schedule ley is an excellent food manager be Problem 8 nt food manager but needs your assistance in preparing the le for 20X8 according to the USALI. Andrew Bromley is an epartment schedule for 20X8 ac. food departmer Revenue information: $850,000 45,000 12,000 2,000 Venue food revenue Service charges Meeting room rentals Allowances Expense information: Food purchases Transfers from beverage department Cost of employee meals Complimentary food-marketing Transfers to beverage department Salaries (management) 300,000 500 10,000 1,000 300 70,000 200,000 Wages (non-management)

Answer 1

Statement of Income Food Department Schedule For the Year Ended 20x8 Amount Particulars Revenues: Outlet food Service charges Meeting room rentals Less: Allowances Total Revenue (A) $ 8,50,000 45,000 12,000 (2,000) $ 9,05,000 Cost of Sales: Cost of food sold Total Cost of Sales (B) Gross Proft (C) = (A)-(B) 2,86,200 2,86,200 $ 6,18,800 Operating Expense: Salaries Wages FICA Expense SUTA Expense FUTA Expense Health Insurance Other Employee Benefits Utensils Uniforms Laundry Operating supply Training Telecommunication Contract Services China Glassware Licenses Linen | Miscellaneous Total Operating Expenses (D) 70,000 2,00,000 20,000 3,000 1,000 25,000 10,000 1,200 5,400 8,000 20,500 2,000 3,500 25,000 6,500 3,600 1,500 5,400 3,200 $ 4,14,800 $ 2,04,000 Operating Income: (E) = (C)-(D) Less: Interest Expense Net Income Before Income Taxes Less: Income Taxes Net Income 2,04,000 $ 2,04,000

Explanation: Cost of food used Beginning Inventory Add: Purchases Less: Ending Inventory 15,000 3,00,000 (18,000) 2,97,000 Cost of food used $ $ 2,97,000 Cost of food sold Cost of food used Less: Employee meaks Complimentary food Transfer to beverage department Add: Transfer from beverage department (10,000) (1,000) (300)| Cost of food sold $ 500 2,86,200