The OYO Abbey Hotel has two operated departments: room and food. The following information is supplied to you as pf December 31, 2020. Account Account Balance Rooms department- salaries and wages EUR 80,000 Food department- salaries and wages EUR 60,000 Supplies and other- food department EUR 20,000 Food purchases EUR 50,000 Rental revenue (lobby space) EUR 10,000 Room sales EUR 380,000 Cost of food sold ? Food sales EUR 175,000 Room- allowances EUR 5,000 Supplies and other- room department EUR 20,000 Other information is as follows: -The beginning and ending inventories of food were EUR 20,000 and 18,000 respectively. Food consumed by the food and A&G department employees during the year (free of charge) totaled EUR 2,000 and EUR 1,000 respectively -Fringe benefits and payroll taxes for all employees, including free food, are 40% of gross salaries and wages. Required: Prepare the operated departments section- of the income statement in accordance with the USALI
The OYO Abbey Hotel has two operated departments: room and food. The following information is supplied to you as pf December 31, 2020.
|
Account |
Account Balance |
|
Rooms department- salaries and wages |
EUR 80,000 |
|
Food department- salaries and wages |
EUR 60,000 |
|
Supplies and other- food department |
EUR 20,000 |
|
Food purchases |
EUR 50,000 |
|
Rental revenue (lobby space) |
EUR 10,000 |
|
Room sales |
EUR 380,000 |
|
Cost of food sold |
? |
|
Food sales |
EUR 175,000 |
|
Room- allowances |
EUR 5,000 |
|
Supplies and other- room department |
EUR 20,000 |
Other information is as follows:
-The beginning and ending inventories of food were EUR 20,000 and 18,000 respectively. Food consumed by the food and A&G department employees during the year (free of charge) totaled EUR 2,000 and EUR 1,000 respectively
-
Required: Prepare the operated departments section- of the income statement in accordance with the USALI.
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