Managerial Accounting
A food division reported cost of sales-food of $198,680. Employees' meals cost $1,225, complimentary meals $142 and transfers in were received from the bar operaton with a cost of &82. Determine the net cost of sales.
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The net cost of sales in this case is $196,491, which is calculated by subtracting the cost of employees meals, complimentary meals, and transfers in from the cost of sales-food. The net cost of sales represents the cost of items actually sold, less any other expenses associated with those items. In other words, it is the cost of goods actually sold to customers.
