Final answer:
The Cost of food used is calculated by adding the available food to any transfers in, then subtracting the ending inventory. In this case, the Cost of food used is $57,705.
Step-by-step explanation:
The student is asking how to calculate the Cost of food used in a business setting, taking into account the available food, food inventory at the end of the year, and transfers from another department. The formula to calculate the cost of food used is:
Cost of Food Used = (Available Food + Transfers In) - Ending Inventory
Using the provided numbers, the calculation is as follows:
Cost of Food Used = ($59,060 + $95) - $1,450
Cost of Food Used = $59,155 - $1,450
Cost of Food Used = $57,705
Thus, the Cost of food used is $57,705.
To calculate the Cost of food used, we need to subtract the Food Inventory on December 31, 20X3 and the Transfers coming from the beverage department from the Available food.
Cost of food used = Available food - Food Inventory, December 31, 20X3 - Transfers coming from the beverage department.
Cost of food used = $59,060 - $1,450 - $95 = $57,515