\begin{tabular}{|l|l|}
\hline Beginning Inventory & [tex]$\$[/tex] 11,500[tex]$ \\
\hline Daily Alternative Purchases & $[/tex](+) \[tex]$ 1,000$[/tex] \\
\hline Produce Purchases & [tex]$(+) \$[/tex] 550[tex]$ \\
\hline Protein Purchases & $[/tex](+) \[tex]$ 1,000$[/tex] \\
\hline Dry Goods Purchases & [tex]$(+) \$[/tex] 1,000[tex]$ \\
\hline Total Available & $[/tex]=\[tex]$ 15,050$[/tex] \\
\hline Ending Inventory & [tex]$(-) \$[/tex] 10,900[tex]$ \\
\hline Food Cost (COGS) & $[/tex](=) \[tex]$ 4,100$[/tex] \\
\hline Revenue (Sales) & [tex]$(+) \$[/tex] 12,500[tex]$ \\
\hline Food Cost \% & $[/tex](=) 32.8\%[tex]$ \\
\hline
\end{tabular}

What is the Beginning Inventory for next week?

A. $[/tex]\[tex]$ 11,500$[/tex] - beginning inventory is always the same
B. \[tex]$3,500 - this week's purchases are next week's beginning inventory
C. \$[/tex]12,500 - the revenue is the beginning inventory
D. [tex]$\$[/tex] 10,900$ - this week's ending inventory is next week's beginning inventory



Answer :

To determine the beginning inventory for next week, we need to consider the proper inventory flow. At the close of each week, the ending inventory for that week logically becomes the beginning inventory for the next week. This follows standard accounting and inventory practices used in businesses.

Here is a step-by-step breakdown:

1. Identify the Ending Inventory for the Current Week:
The given table states that the ending inventory for the current week is [tex]$10,900. 2. Understand Inventory Flow: - The beginning inventory for the week is $[/tex]11,500.
- During the week, various purchases (totaling to [tex]$3,550) were added to this initial inventory to get a total available inventory of $[/tex]15,050.
- Sales and consumption reduce this total available inventory to an ending inventory of [tex]$10,900. 3. Determine the Beginning Inventory for the Next Week: According to the norm, the ending inventory of the current week (after all purchases and consumption have been accounted for) will roll over to become the beginning inventory for the following week. Thus, based on this logical inventory flow, the beginning inventory for next week will be the same as the ending inventory of this week. Therefore, the correct answer is: d. \$[/tex]10,900 - this week's ending inventory is next week's beginning inventory.