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1. Olan Haynes is responsible for managing the inventory at the Dobie Road Retirement Center. Olan
purchases a variety of items by the case, but he prefers to inventory all of these items in other ways.

For example, he purchases beets by the case. Each case of beets contains 6 cans. But Olan wants to
calculate his inventory value based on the number of cans of beets he has in inventory, not the number
of cases. Use the following chart to calculate the preferred inventory unit value (e.g., dollars per can, jar,
or bottle) that Olan should use for each item listed, based on the purchase unit cost of each item Olan
holds in his inventory. (0.5 points)

Preferred
Preferred Inventory Inventory
Inventory Purchase Purchase Inventory Units per Unit Value
Item Unit Unit Cost Unit Case $
Beets 1 case $18.00 can 6 3
Chicken
1 case $96.12 jar 12 8. 01
base
Catsup 1 case $19.44 bottle 24 0.81
Soy sauce 1 case $22.80 gallon 4 5- 7

Cocoa mix 1 case $21.50 bag 10 2. 75

2. Jack Stills operates the Spartan Restaurant. He is taking the end-of-month inventory in the
restaurant’s bar. When calculating the value of his spirits, he uses the “tenths” method of estimating
product value. He has accounted for all of the spirits product held in his liquor storage area and is now
calculating the value of his “behind the bar” inventory. He has completed this process for all of the
products he serves except gin. Help him arrive at the ending inventory value for gin by completing the
following portion of his Spirits inventory value sheet. (1.5 points)

Cost Per Amount on

Product
Product 750 ml Hand (750
Value
Bottle ml)
Seagram’s $11.50 2.3 26.45

Well Gin $7.50 4.6 34.5

Bombay $17.50 2.2 38.5

Bombay Sapphire $19.50 2.9 56.55

Tanqueray $16.50 1.0 16.5

Tanqueray Ten $19.00 1.7 32.3

Tanqueray
$19.00 2.3
Rangpur 43.7

Gordon’s $10.75 1.5 16 -

13

White Satin $22.50 0.8 18

Total Value 743.75 19.3 282.63

3. Kyle Minoge manages the four-person ingredient room staff at the 800- bed Parkview Hospital. One
tool Kyle has developed to help monitor his inventory levels on a daily basis is a requisitions and issues
record that records daily all of the inventory items requested by the kitchen’s production staff and
issued by Kyle’s storeroom staff. The record Kyle maintains also indicates the monetary value of the
issues made. Help Kyle complete part of yesterday’s requisitions and issues record below. (1 point)

Parkview Hospital Requisitions and Issues Record

Storage Unit Requested Issued Issued
Item Total Cost
Unit Cost Amount Amount Unit

Flour 25-lb. bag $25.00 25 lb. 1 bags 25

Beef base 1-lb. jar $7.15 3 lb. 3 jars 21.45

Roast
beef (top lb. $6.24 50 lb. 54 pounds
336.96
round)
Potatoes
40-lb. box $15.00 78 lb. 2 boxes 30
(redskin)
Broccoli
3-lb. box $2.55 61 lb. 21 boxes
(frozen) 53.55

Why do you think the amount of roast beef, potatoes and broccoli requested by the kitchen staff
yesterday was different than the amount issued by Kyle’s ingredient room staff? (2 points)

Answer:

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4. Robin Christopher uses bin cards to manage the wine inventory at the Michelin-starred Riverside
Restaurant. Each of the wines held in inventory has its own bin card. The bin card for Hundred Acre
Cabernet, listed on the menu for $450 per bottle, is presented below, along with its purchase and sales
activity for the month of October. Make the appropriate entries on the card for the month of October to
determine how much of this wine Robin should have in inventory on each of the days listed including
the end of the month. (2 points)

Bin Number: 237

Hundred Acre Cabernet, Bottle Size: 750 ml
Date In Out Amount on Hand
Oct. 1 23
Oct. 3 2 21

Oct. 8 1 20

Oct. 10 5 15

Oct. 12 12 27

Oct. 14 2 25

Oct. 15 2 23
 Oct. 17 4 19

Oct. 19 5
Oct. 21 12 :
Oct. 23 2 24

Oct. 25 3
Oct. 30 3 :
Oct. 31 1 17

What would it mean if Robin took a physical inventory at the end of October and there was actually one
bottle less in inventory than indicated on the wine’s bin card? What would it mean if there was actually
one bottle more than indicated on the wine’s bin card? (2 points)

Answer:

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5. Kesha Avril operates Rio Bravo. Rio Bravo is a small, fast-casual Mexicanstyle restaurant. Keisha would
like to set up an ABC inventory system for monitoring some of her inventoried products. Keisha has
listed below last month’s usage for 20 key items she holds in inventory.

a. Calculate Monthly Usage $ (2 points)

B. Assign each inventory item to an A, B, or C inventory category where the top 20% of the items (75% of
the cost) are assigned to category A, the next 30% of the items (15% of the cost) are assigned to category B
and the remaining 50% of the items (10% of the cost) are assigned to category C. (2 points)

Purchase Inventory
Monthly Purchase Price per Monthly Category
Item Usage Unit Unit Usage $ (ABC)
Skirt steak 527 pound $4.15 2187.05 A

Avocado 85 case $19.50 1657.5 A

Pork butt 483 pound $2.78 1342.7 A

Chicken breast 1,023 pound $0.99 1012.77 A

Rice 6 bag $45.00 270 B

Tortilla chips 265 pound $0.88 233 B

Green peppers 7 case $28.50 199 B

Fresh tomatoes 16 lug $11.50 184 B

Tilapia fillets 61 pound $2.95 179.95 B

 Flour tortillas 200 pound $0.88 176 B

White cheddar
28 pound $3.50
cheese 98 C

Iceberg lettuce 5 case $18.50 92.5 C

5-lb.
Sour cream 21 $4.25 89.25
carton C

Sofrito 42 jar $2.10 88.2 C

Onions 2 bag $44.00 88 C

Corn tortillas 230 pound $0.38 87.4 C

Cilantro 6 crate $14.10 84.6 C

Parsley 4 crate $18.00 72 C

Cumin 10 pound $6.38 63.8 C

Chili powder 12 pound $4.60 55.2 C

Don't forget to calculate the total after you sort Total 8,267.66

6. Lesley is the purchasing manager for an organic food restaurant with a banquet room. She needs to
create the food purchase orders for tomorrow. Her par-value, on-hand, and special-order requirements
are as follows. Help Lesley determine the amount of each item she needs to order. (1 point)

Daily Inventory Sheet

Par On Special Order
Item Description Unit Value Hand Order Amount
Avocados 48 ct. case 6 2 3
Cauliflower 12 ct. case 5 1 :
Cucumbers Medium case 3 0 3

Grapes Red seedless lug 4 1 3

Green leaf, 24
Lettuce
Lettuce
ct.
Romaine, 24 ct.
case
case
5
3
2
0.5
4
73
Pears D'Anjou case 3 1
Peppers Green bell, med. case 7 2 5 :
Pineapples 7 ct. case 4 0 4

Potatoes B reds 50-lb bag 3 0.5 3

Potatoes Peeled, large 25-lb bag 4 1 4 7

Squash Yellow #2 30-lb case 5 2 2

Strawberries Driscoll flat 3 1.5 52

7. Maxine Wilson is the executive chef at the Plainview Air Force Base. Fajita Spiced Whitefish is one of
Maxine’s most popular items. Using the standardized recipe information below calculate the total recipe
cost and the per portion cost for Maxine’s Fajita Spiced Whitefish. (0.5 point)
 Fajita Spiced Whitefish
Yield in portions: 50 Portion size: 6 oz.
Recipe
Ingredient Amount Procedure
Cost
Boneless whitefish
50 fillets $103.20 Pat whitefish fillets dry.
fillet: 6 oz.
Potato flakes; dry 1 lb. 8 oz. $1.58
Cornstarch 10 oz. $0.96 Mix potato flakes, cornstarch, flour,
and seasoning to make a breading.
Flour, all-purpose 4 oz. $0.25 Coat each fillet with the breading
Fajita seasoning 10 oz. $4.18 mixture.
Salt 4 oz. $0.10
Vegetable oil 4 cups $2.73 Heat oil in fry pan. Place breaded
fillet into hot oil, presentation side
down. Cook until browned, then
turn to brown other side. Remove
from fry pan and drain.

Total Recipe Cost $ 113 Portion Cost 2. 26

8. Helen Lang is the manager at the Prime Rib House restaurant. Her bestselling menu item is the 10-
ounce regular cut prime rib. Helen pays $8.97 a pound for the standing rib roasts she uses. When properly
trimmed, cooked, and sliced, each 22-pound rib roast she buys will produce 25 regular cut slices weighing
10 ounces each. Tonight, Helen’s production forecast calls for the cooking of two rib roasts. Calculate the
portion cost of this item that Helen’s operation would achieve if the following number of 10-ounce
portions are actually served from the two cooked roasts. (1.5 points)

Number of roasts 2

Rib roast weight in lb. 22

Total number of lb. 44

Cost per lb. 8.97

Total cost of ribs 394.68

Rib Portions Served Portion Cost

50 7. 89
48 8. 22

46 8. 58

44 8. 97

42 9.4
40 9. 87
 What two key areas of controlling production costs would Helen want to monitor to ensure the two rib
roasts cooked and served by her production staff have the lowest portion cost? (1.5 points)

Answer:

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1.
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9. Mario Armando Perez is the kitchen manager at the Asahi Sushi House. Mario’s restaurant offers five
popular types of sushi roll. Mario keeps careful records of the number of each roll type sold, from which
he computes each item’s popularity index. For March 1, Mario estimates 150 guests will be served.

Based on his experience, and to ensure he does not run out of any item, Mario would like to have extra
servings (planned overage) of selected menu items available for sale. Using planned overage, the
popularity index of his menu items, and his prior day’s carryover information, help Mario determine the
amount of new production needed and the total available for the day.

At the end of the day, Mario also records his actual number sold in order to calculate his carryover
amount for the next day. Using all of the information given, help Mario complete his kitchen production
schedule for March 1. (2 points)

Mario’s Kitchen Production Schedule: March 1

Prior
Sales Day Num
Popularity Fore Planned Carry New Total ber Carry
Menu Item Index cast Overage over Production Available Sold over
Spicy Tuna Roll 34% 51 5 6 50 56
52 4

Salmon Special
10% 15 5 2 18 20 8
Roll 12
Spicy Shrimp
30% 45 5 5 45 50 O
Roll 50
California Roll 20% 30 5 2 33 35 30 5

BBQ Eel Roll 6% 9 0 0 9 9 5 4

Total to Serve 100% 150 20 15 155 170 149 21

10. Overportioning alcoholic beverages most often causes a significant increase in beverage portion costs
and it will make it more difficult to ensure an operation is practicing responsible alcoholic beverage
service. As a result, overportioning when preparing and serving alcoholic beverages must be avoided.

The underportioning of liquor caused by a bartender's failure to follow a drink's standardized recipe can
also be a problem for an operation. What would be the likely result in an operation that consistently
underportions the amount of liquor used in the drinks that it serves? (1.5 points)

Answer:

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