A bar operation achieved $92,000 in beverage sales for an accounting period. For that period, it had a beginning inventory of $25,000. Ending inventory was $22,000 and beverage purchases equaled $20,000. What was the bar's beverage cost percentage for the period?

Question

Quizplus · Accepted Answer

The beverage cost percentage is calculated as (Beginning inventory + Purchases - Ending inventory) / Beverage sales. In this case, the beverage cost percentage is ($25,000 + $20,000 - $22,000) / $92,000 = $23,000 / $92,000 = 25%.

A Bar Operation Achieved $92,000 in Beverage Sales for an Accounting