Chapter 11—Inventory Procedures and Controlling Costs
TRUE/FALSE
1. An inventory is a catalog or itemized list of stock and its estimated value.
2. A physical inventory is a continuous or endless inventory. It is a record that is taken in the
storeroom to show the balance on hand for each storeroom item.
3. At the end of each month, when the perpetual inventory of each item is taken, the physical
inventory should match the physical inventory.
4. To find the monthly food cost percent, the purchases for the month are added to the
inventory at the beginning of the month, and the final inventory plus the amount of food in
production is subtracted to give the cost of food sold for the month.
5. Purchases + beginning inventory – food in production – final inventory = Cost of food sold
6. The weekly inventory recapitulation tells the food service operator what percentage of the
total sales for that period was used to purchase food for the operation.
MULTIPLE CHOICE
1. A(n) _____ is a catalog or itemized list of stock and its estimated value.
a.
profit and loss statement
b.
inventory
c.
storeroom requisition
d.
daily food cost report
2. A _____ is taken in the storeroom to show the balance on hand for each storeroom item.
a.
perpetual inventory
b.
storeroom inventory form
c.
daily food cost report
d.
purchases form
3. At the end of each month, when the physical inventory of each item is taken, the physical
inventory should match the _____.
a.
profit and loss statement
b.
perpetual inventory
c.
monthly food cost report
d.
inventory recapitulation form
4. The _____ may be taken at the end of each month or as frequently as needed, in order to
determine the accurate cost of food consumed during that period.
a.
perpetual inventory
b.
daily food cost report
c.
storeroom requisition
d.
physical inventory
5. To find the monthly food cost percent, _____.
a.
the final inventory plus the amount of food in production is added to give the cost
of food sold for the month, and the monthly food cost percent, the purchases for
the month are divided by the inventory at the beginning of the month
b.
the purchases for the month are added to the inventory at the beginning of the
month, and the final inventory plus the amount of food in production is subtracted
to give the cost of food sold for the month
c.
the purchases for the month are subtracted from the inventory at the beginning of
the month, and the final inventory plus the amount of food in production is added
to give the cost of food sold for the month
d.
the final inventory plus the amount of food in production is added to give the cost
of food sold for the month, and the monthly food cost percent, the purchases for
the month are subtracted to the inventory at the beginning of the month
6. The _____ tells the food service operator what percentage of the total sales for that period
was used to purchase food for the operation.
a.
monthly food cost percent
b.
weekly inventory recapitulation
c.
monthly profit and loss statement
d.
final inventory
NUMERIC RESPONSE
Find the cost of food sold or the monthly food cost percent. Round percent answers to the
nearest hundredth.
1. Food in Production: $4,570
Sales: $38,800
Inventory at Beginning of Month: $4,531
Purchases for the Month: $38,467
Final Inventory: $3,136
Cost of Food Sold: $_______________
2. Food in Production: $2,194
Sales: $29,724
Inventory at Beginning of Month: $7,208
Purchases for the Month: $14,267
Final Inventory: $5,163
Cost of Food Sold: $_______________
3. Food in Production: $1,750
Sales: $61,528
Inventory at Beginning of Month: $4548
Purchases for the Month: $25,893
Final Inventory: $4,396
Cost of Food Sold: $_______________
4. Food in Production: $4,285
Sales: $83,121
Inventory at Beginning of Month: $9,538
Purchases for the Month: $35,163
Final Inventory: $7,214
Cost of Food Sold: $_______________
5. Food in Production: $6,410
Sales: $105,380
Inventory at Beginning of Month: $9,021
Purchases for the Month: $53,583
Final Inventory: $8,468
Cost of Food Sold: $_______________
6. Food in Production: $3,094
Sales: $73,803
Inventory at Beginning of Month: $4,574
Purchases for the Month: $30,784
Final Inventory: $2,766
Monthly Food Cost Percent: _______________%
7. Food in Production: $3,157
Sales: $36,188
Inventory at Beginning of Month: $7,680
Purchases for the Month: $13,600
Final Inventory: $4,040
Monthly Food Cost Percent: _______________%
8. Food in Production: $2,401
Sales: $69,271
Inventory at Beginning of Month: $5,366
Purchases for the Month: $24,338
Final Inventory: $4,312
Monthly Food Cost Percent: _______________%
9. Food in Production: $5,460
Sales: $91,557
Inventory at Beginning of Month: $9,128
Purchases for the Month: $38,910
Final Inventory: $8,308
Monthly Food Cost Percent: _______________%
10. Food in Production: $8,440
Sales: $100,555
Inventory at Beginning of Month: $8,638
Purchases for the Month: $47,651
Final Inventory: $7,807
Monthly Food Cost Percent: _______________%
Round percents to the nearest hundredth.
11. Given the total sales = $422,000
If the cost of the meat = $46,456.50
Find the food cost percent for meat.
_______________%
12. Given the total sales = $323,138
If the cost of fish = $23,710.15
Find the food cost percent for fish.
_______________%
13. Given the total sales = $225,000
If the cost of dairy = $15,861.44
Find the food cost percent for dairy.
_______________%
14. Given the total sales = $356,556
If the cost of produce = $30,965.82
Find the food cost percent for produce.
_______________%
COMPLETION
1. A(n) ____________________ is a catalog or itemized list of stock and its estimated value.
2. A(n) ____________________ ____________________ is a continuous or endless
inventory.
3. When doing a(n) ____________________ ____________________, an actual count is
taken of all stock on hand.
4. The ____________________ ____________________ ____________________ percent
tells the food service operator what percentage of the total sales for that period was used to
purchase food for the operation.
MATCHING
Match the following chapter terms with their definition.
a.
inventory
d.
final inventory
b.
perpetual inventory
e.
cost of food sold
c.
physical inventory
1. A count taken of all stock on hand
2. Monetary value of food on hand at beginning of the month, plus the purchases for the
month, minus the monetary value of food in the final inventory
3. A continuous or endless record to show the balance on hand for each storeroom item
4. A detailed list of items with their estimated values
5. The total value of all goods on hand