winniepooh99
New member
The roasts a restaurant purchases weigh 23 pounds (AP) apiece. After the restaurant processes the roasts into pork cutlets it loses approx 3 pounds. The loss is a waste and has to be thrown away. The edible yield, that is available for each roast to make pork cutlets is 80 percent.
The AP price for the roasts the restaurant purchases is $3.00 per pound and the standard portion size of pork cutlet is 8 ounces (EP).
Last month the restaurant had opening inventory of pork roasts of 110 pounds (AP), purchases of 200 pounds (AP) and closing inventory of 100 pounds (AP). During the month, the records indicated that restaurant sold 330 pork cutlet menu items at menu price of $14.00.
What is the variance between actual cost of pork roasts used during the month and the standard cost of pork roasts that should have been used during the month?
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I have no idea where to start and how to go about solving this problem...
Well, for the inventory, I got this formula of :
(Opening inventory + purchases ) - Ending inventory so = (110 lbs + 200 lbs ) -100 = 210 lbs
Don't know if that is right or where to go from here...
The AP price for the roasts the restaurant purchases is $3.00 per pound and the standard portion size of pork cutlet is 8 ounces (EP).
Last month the restaurant had opening inventory of pork roasts of 110 pounds (AP), purchases of 200 pounds (AP) and closing inventory of 100 pounds (AP). During the month, the records indicated that restaurant sold 330 pork cutlet menu items at menu price of $14.00.
What is the variance between actual cost of pork roasts used during the month and the standard cost of pork roasts that should have been used during the month?
-----------------
I have no idea where to start and how to go about solving this problem...
Well, for the inventory, I got this formula of :
(Opening inventory + purchases ) - Ending inventory so = (110 lbs + 200 lbs ) -100 = 210 lbs
Don't know if that is right or where to go from here...