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The Supplier to the School Cafeteria Is Stuck with a Lot

Question 7

Multiple Choice

The supplier to the school cafeteria is stuck with a lot of unsold whole turkeys just before Christmas 20X8. They shape the meat into slices to be put on bread and sell this at a discount. The F&B manager decides to buy a few pounds on December 23rd, the last day of school that year, and put it in the freezer for selling it sometime in January 20X9. She pays the bill on January 15th, 20X9. In which month will the cost of sales be recorded in the income statement of the cafeteria?


A) At the time they sell the meat: income statement January 20X9.
B) At the time they pay the bill: income statement January 20X9.
C) C At the time they decide to buy the meat: income statement December 20X8.

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