Compare Delivery Invoice and Purchase Order Product Quantity (weight or count) Purchase Unit Price Confirm Product Quality Sign Delivery Invoice Issue Credit Memo (if necessary) Move Product to Storage Complete Receiving Report Step 1: Step 2: Step 3: Step 4:

ItemPurchase Unit No. of Units In Kitchen Storage (a) Purchase PriceTotal Cost Green BeansCase2$31.50$63.00 Total$ (a) Note: ideally items are stored in the same containers in which they were purchased. This can reduce double- handling and provide a convenient container for marking information about the date of receipt and product costs. It is also, for example, easier, faster and, probably, more accurate to count one case of six #10 cans of fruits or vegetables than it is to count six individual cans of each product.

Item:Strip Steaks (6 oz.) DateNo. of Purchase UnitsBalance InOut 37 9/10/xx /11/xx352027

 Cost of food inventory at beginning of month= $29,500  Cost of food purchases during month= $76,000  Cost of food inventory at end of month = $27,500  Food cost (cost of goods sold) during month= $78,000 = 2.74 turns

 Purchase unit – The standard size of the product package.  Product usage rate – The number of purchase units used during a typical order period.  Order period – The time for which an order is normally placed.  Lead time usage – The number of purchase units used between order placement and delivery.  Safety level – The minimum number of purchase units that must always remain in inventory.  Order point – The ideal number of purchase units in inventory when an order is placed.

 Case of Pears:  Invoice cost: 38$/ 24 lbs = per lb $  $38.00/ 24 = ? Lbs  $1.583 = $1.58/lb  This becomes your price per unit  Unit Price = $1.58/lb

 Look at the products on each slide.  Circle or underline if each product is “acceptable” or “unacceptable”. If “Unacceptable”, identify the problem and estimate the cost of the product.

What does the picture suggest? Determine the Unit Cost: Case: $28.90/12 qts What is the Unit Cost? Unit Cost: $2.41

 An entire case of apples arrives. ¼ of the case contains #1 quality apples that appear in the picture. Determine the Unit Cost: Case: $22.95/20-22 What is the Unit Cost? Unit Cost: $1.15 ea