Calculating Food available for Sale (FAS)

Q1. Use the following information to answer question 18-19 Calculate food available for sale: beginning inventory $250,000; purchases $300,000; ending inventory $150,000; employee meals $15,000

a. $450,000
b. $395,000
c. $550,000
d. $525,000

$250,000 (Beginning Inventory) + $300,000 (Purchases) = $550,000 (Food Available for Sale)

Q2. Using the previous information, what is the cost of food consumed?
a. $450,000
b. $425,000
c. $350,000
d. $400,000

$250,000(Beginning Inventory) + $300,000 (Purchases) = $550,000 (Food Available for Sale) – (Ending inventory ) $150,000 = $400,000 (Cost of food Consumed)

Q3. Using the above information (Q19) what is the cost of food sold:

a. $390,000
b. $385,000
c. $285,000
d. $350,000


$250,000 (Beginning Inventory) $ 300,000 (Purchases) = $550,000 (Food Available for Sale)- $150,000 (Ending Inventory) - (Employee meals ) $15,000 = $385,000 (Cost of Food Sold)