cost of goods sold - CostofGoodsSold Beginninginventory...

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Cost of Goods Sold  Beginning inventory $100.00 + Purchases      +150.00   - Ending inventory -  75.00 = Cost of Goods Sold $175.00 Uses Dollar Value of Inventory
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Cost of Goods Sold is used  to calculate Food Cost Percentage Food Cost Percentage   determines your bonus   Inventory is used to calculate  cost of goods sold Therefore, accurate inventory  is essential to accurate FC%
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Cost of Goods Sold / Sales = Food Cost Percentage Food  Cost Percentage $175.00 / $500.00 = 35% (CoGS) (Sales)
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Inventory is a number that is, it counts the number    of items you have on hand BUT It is the VALUE of the inventory  that is used in cost of goods sold and food cost percentage calculations
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You count  5, # 10 cans of tomatoes on your shelf The VALUE of those cans is    equal to the number of cans times their dollar value
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Perpetual Inventory is   calculated by computer systems Purchases are downloaded into  the software Reductions in inventory are   calculated as sales are made.
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