Question

ABC Hotel is a 390-room economy hotel in downtown St. Louis. After taking physical inventory of the laundry chemicals on May 31^st, the assistant controller found that:

In the Main Storeroom

• 15 cases of detergent at $90 each
• 15 cases of neutralizer at $65 each
• 16 cases of softener at $31 each
• 7 pails of bleach at $7.50 each
• 1 bucket of starch at $13.50 each

In the Laundry Room

• 5.75 cases of detergent
• 2.25 cases of neutralizer
• 8.50 cases of softener
• 0.50 pails of bleach
• 0.25 buckets of starch

The beginning inventory for laundry supplies on May 1^st was $6,051.75. Purchase of laundry chemicals on May 9^th totaled $890.15. The hotel sold 9,067 rooms for the month at an average daily rate of $65.10. Please calculate the laundry chemical cost percentage for the month. Please round all answers to two decimal places.

First please calculate total ending inventory $___

2. Please use the information in Question 1 to calculate the cost of laundry supplies used. Round all answers to two decimal places.

Cost of laundry supplies used $___

3.Please use the information in Question 1 to calculate the monthly rooms revenue. Round all answers to two decimal places.

Monthly rooms revenue $___

4. Please use the information in Question 1 to calculate the laundry cost percentage. Round all answers to two decimal places.

Laundry cost percentage ___%

5. Calculate the net food cost percentage for the Food department of a hotel for the month of May. The total food sales revenue for May was $191,118. The following information has been gathered:

• beginning inventory on May 1st was $6,932
• purchases in May totaled $12,883
• food transferred from main storeroom was $61,315
• food transferred to other outlet was $114
• entertainment and promotion checks totaled $2,010
• management signed checks were $691
• documented food spoilage was $139
• food for employee meals was $5,795
• happy hour hors d’oeuvres was $2,040
• ending inventory on May 31st was $6,318

To earn full credit, please calculate these amounts. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

First calculate gross cost of food sales $___

Answer 1

The Answer to various questions are as under:-

Answer-1

a) Ending Inventory - $ 3821.38

b) laundry chemical cost percentage – 0.53%

Answer 2

Cost of laundry supplies used - $3120.53

Answer-3

Monthly Room Revenue - $ 5,90,261.70

Answer 4

Laundry Cost % - 0.53%

Answer 5

a) Net Food Cost %                              33%

b) Gross Cost of Food sales               $64,023

The detailed working is as under;-