Question

Calculate the cost per meal using the following information: Value of January inventory = $24,850, Value of February inventory = $22,730, Cost of foods purchased during January = $43,575, Number of meals served during January = 96,400?

Answer 1

To calculate the cost per meal, subtract the value of February inventory from the value of January inventory and divide it by the number of meals served. The cost per meal is $0.43.

Step-by-step explanation:

To calculate the cost per meal, we need to calculate the total cost of food purchased and divide it by the number of meals served. First, subtract the value of February inventory from the value of January inventory to find the cost of food consumed: $24,850 - $22,730 = $2,120. Next, subtract the cost of food consumed from the cost of foods purchased during January to find the cost of food remaining: $43,575 - $2,120 = $41,455. Finally, divide the cost of food remaining by the number of meals served during January to find the cost per meal: $41,455 / 96,400 = $0.43 per meal.