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finance accounts short assignment

1. Briefly describe how a perpetual inventory system works.

b. In most operations, it is too expensive to maintain a perpetual inventory for all items. However, it may be beneficial for some items. Which items would you like to keep on a perpetual-inventory basis? Why?

 

2. What is the main difference between theft and pilferage?

 

3. Given the following data, compute the food cost percentage:

 

Total Sales: $500,000

Food Sales:75 percent of total sales

Beverage sales: 25 percent of total sales

Beginning food inventory: $25,000

Ending food inventory:$30,000

Total food purchases: $200,000

Employee meal cost: $6,000

 

4. If the beginning food inventory is $12,500, the food purchases are $40,000, and the food cost is $47,500, what is the ending food inventory (dollar amount)?

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