Question

Beginning inventory is &12,000 the purchase are $20,000 the ending inventory is $14,000 and other credits are $2,000 what is the actual food cost

Answer 1

the actual food cost is $20,000.

Explanation:

To calculate the actual food cost, we need to use the following formula:

Actual Food Cost = Beginning Inventory + Purchases - Ending Inventory + Other Credits

Substituting the given values in the formula, we get:

Actual Food Cost = $12,000 + $20,000 - $14,000 + $2,000

Actual Food Cost = $20,000

Therefore, the actual food cost is $20,000.