Chapter 9 - Daily food cost. After reading this chapter, you should be able to: Calculate food cost for any one day and for all the days to date in a period, calculate food cost percentage for any one day and for all the days to date in a period, determine book inventory value,. | Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition All foods can be categorized as either directs or stores in food control, the total costs for these two are the two basic components of the daily food cost. As discussed earlier, directs are charged to food cost as received. Therefore, to determine food cost for any given day, one must know the total of directs received on that day. This figure is readily available if the Receiving Clerk's Daily Report or a similar form is completed each day. Stores purchases are added to inventory and charged to the food cost when issued. One must determine the value of stores issued on a given day, each day, to obtain the second principal component of food cost for that day. If all foods issued from inventory are listed on requisitions, the determination is not difficult. One merely prices and extends each requisition for foods issued on that day and then adds the totals for all requisitions to obtain the total cost of stores . | Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition All foods can be categorized as either directs or stores in food control, the total costs for these two are the two basic components of the daily food cost. As discussed earlier, directs are charged to food cost as received. Therefore, to determine food cost for any given day, one must know the total of directs received on that day. This figure is readily available if the Receiving Clerk's Daily Report or a similar form is completed each day. Stores purchases are added to inventory and charged to the food cost when issued. One must determine the value of stores issued on a given day, each day, to obtain the second principal component of food cost for that day. If all foods issued from inventory are listed on requisitions, the determination is not difficult. One merely prices and extends each requisition for foods issued on that day and then adds the totals for all requisitions to obtain the total cost of stores issued. In operations where transfers are made (promotion expense, employees’ meals, and steward sales, for example), values for these should be determined daily and taken into account as well. One would determine their value and then credit the daily food cost for that amount. The value of any alcoholic beverages transferred from the bar to the kitchen for use in food preparation should be charged to food cost. Many establishments credit daily food cost for the value of employees’ meals. Opening inventory is the dollar value of all food on hand at the beginning of the accounting period. Purchases are the sum cost of all food purchased during the accounting period. Total Available is the sum of the beginning inventory and purchases. Closing inventory refers to the dollar value of all food on hand at the end of the accounting period. Cost of food consumed is the actual dollar value of all food used, or consumed, by the operation. Employee meal cost is a labor-related, not food-related cost.
