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PLEASE SOLVE THIS QUESTION IN AN EXCEL SHEET ? 1 a. Given that food sales are $450,000...

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Accounting

PLEASE SOLVE THIS QUESTION IN AN EXCEL SHEET ?

1 a. Given that food sales are$450,000 for the year and beverages sales are 80,000,prepare   a statement of income forMavericks Restaurant using the expenses below. (Use Figure 1.1 onpg 5 as a guide). Hint: Remember “controllablefixed” costs fall under Other Controllable Expenses. (roundto two decimal points)

Administrative Expenses     $4,000

Employee Benefits $27,550

Cost of food sold $140,000

Salaries and wages $120,000

Utilities $26,000

Depreciation on equipment $14,100

Cost of beverages sold $16,230

Interest expense     $3,100

Occupancy costs $33,200

Advertising     $5,000

b. Based on the figures above, calculate:

Prime cost percent

Overhead cost percent

Profit percent

(Remember to ensure they equal up to 100%)

Labor cost percent

Food cost percent

Answer & Explanation Solved by verified expert
3.9 Ratings (435 Votes)

1a) INCOME STATEMENT: Amount $
Sales revenue:
Food 450000
Beverage 80000
Total Sales revenue 530000
Cost of Sales
Cost of food sold 140000
Cost of beverages sold 16230
Total Cost of Sales 156230
Gross Profit 373770
Less: Controllable Costs:
Salaries and Wages 130000
Employee Benefits 27550
Utilities 26000
Advertising 5000
Total Controllable costs 188550
Income before Non-Controllable costs: 185220
Less: Non Controllable Costs:
Occupancy costs 33200
Interest 3100
Depreciation on equipment 14100
Total Non-Controllable costs 50400
Restaurant Income 134820
b.)
Prime cost percent Cost of sales / Sales = 156230/530000= 29.48%
Overhead percent (Controllable + Non-Controllable costs)/Sales
(188550+50400)/530000 = 45.08%
Profit persent Restaurant Income / Sales = 134820/530000 = 25.44%
Labor cost percent (Salaries & wages exp. + employee benefits)/Sales
(130000+27550)/530000 = 29.73%
Food cost percent Cost of food sold / Sales = 140000/530000 = 26.41%

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