I posted the whole case study so that you could refer to it I am struggling to understand this I figured out a lot, but I need help to understand where I put the marks I do not want just the answer, I need to understand it, please ) Thanks so much in advance Case Scenario At Stacy's Sodas and Sliders, Stacy serves craft sodas on draft which she prepares herself Her beverage cost has always been a bit high In the past she has not addressed her excessive beverage costs because, compared to other expenses within her operation, beverage cost is relatively low and implementing inventory controls is difficult because the soda is on draft At the request of one of her investors, Stacy analyzed her beverage cost of sales over the last few months In doing so, she noticed that her costs were over 20 higher than they should have been based on her standard cost calculation This came as somewhat of a shock to Stacy she is not sure exactly what could be causing the variances As Stacy contemplated the cause of the large discrepancy between her actual beverage cost of sales and her standard beverage cost of sales, she identified some acceptable reasons the two would not match First, guests sometimes change their mind after a drink has already been poured these drinks are normally discarded Second, when a keg is first tapped or if a tap has not been used for a while, the soda supply lines will often build up foam inside which needs to be purged Third, when loading the truck each day, there are sometimes kegs with a small amount of soda in them In such cases, the soda is discarded to optimize space on the truck In Stacy's view all these reasons were acceptable, but she did not know how much of the standard cost variance was represented in this acceptable waste To find out, she asked all her staff to start pouring all discarded soda from purging the lines and voiding drinks into a bucket and log the results at the end of each shift The waste figures would then be reported in a weekly waste log report Stacy also started logging the soda that was discarded in the kitchen when loading up the truck She reasoned that the total soda recorded in her waste logs would need to be added to the amount sold to come up with a theoretical total that represented the total amount of soda that should have been used The difference between how much soda was actually used and this theoretical total is the amount of unaccounted for soda Any unaccounted for soda represents an inefficiency in her operation and an opportunity to increase Stacy's profitability There are many unacceptable reasons why there may be soda that is unaccounted for In the past, Stacy has created policies to prevent these and control her costs These policies include the following 1 Employees can only have one soda per shift served with their employee meal All employee meals, including sodas, should be recorded using the POS software 2 Complimentary drinks shall not be given to employee acquaintances or customers unless authorized by a manager Such drinks should be rang in and coded to either in store promotions or complimentary meals 3 Drinks shall not be dispensed until the sale is recorded and payment is collected 4 All drinks should be filled to from the rim (14 ounces) If followed, the measures above, along with proper waste logging, prevents any significant unaccounted for soda It is not that Stacy was indifferent about the overspending, she just figured her time was better spent focusing on controlling her food cost or labor which represent a much more significant portion of her total expenses However, she recently came across an article in a brewing publication that gave her additional insights The article stated that the true cost of unaccounted for beverages is often understated This is because standard cost variances fail to account for the potential of missing revenue For instance, assuming 100 drinks were poured, but never rang in, the product cost of those 100 drinks would be $22 57 This would cause the actual cost of beverages sold to be $22 57 higher than standard cost Looking purely at standard cost variances however potentially understates the true financial impact of 100 drinks that were poured, but never rang in If 100 drinks were poured for customers who paid for, or would have paid for, the drinks Stacy is not only out the $22 57 in product cost, but $200 00 in revenue that was never collected as well If instead, the 100 drinks were poured but never rang in because employees drank them while on shift, it is unlikely that these employees would have otherwise paid for them and thus the impact to Stacy is the $22 57 in product cost How impactful reducing the unaccounted for soda variance to zero would be is largely contingent upon how much of the variance resulted from uncollected revenue Help Stacy analyze her beverage cost of sales by calculating the following 1 The total amount of soda actually used (Question 1) 2 The total amount of soda sold (Question 2) 3 The total amount of soda that is unaccounted for (Question 3) 4 The amount of unaccounted for soda by flavor (Question 4) 5 The estimated impact of the missing soda on her profit (Question 5) Other Relevant Information A glass of soda is sold for $2 00 and contains 14 ounces A growler is a jug made of glass used to transport draft soda or beer A growler holds 64 ounces and a refill is sold for $6 00 In addition to sodas, Stacy also sells floats Customers can make any craft soda into a float with an additional charge of $2 00 On the menu and in the POS system float upgrades are recorded as Make it a float When a guest upgrades their drink to a float, approximately 6 ounces less soda is used to offset the added volume of the ice cream Soda is prepared in 25 gallon batches A batch is divided between 5 Cornelius kegs which each hold 5 gallons Kegs are stored in a designated walk in refrigerator in the kitchen where they cool and carbonate When ready for use, the kegs are loaded onto the food truck in draft dispensing units called kegerators Kegerators are keg refrigerators that have built in soda lines and taps used to pour the soda Early in the morning on the first day of the period, an inventory is taken of all items including the kegs The kegs in the walk in and on the truck are measured Soda is inventoried by the keg volumes are rounded to the nearest tenth of a keg Inventories taken at the beginning of the period are used as the ending inventory of the prior period Stacy also reports all the soda produced over the course of the period As with inventory, volumes are recorded in kegs by flavor Case Assumptions Vessel Glass Growler Make it a float Ounces 14 64 6 Sales Price $2 00 $6 00 Soda standard cost per ounce $0 016122 Conversion Chart Ounce Gallon Keg Ounce 1 0 0078125 0 0015625 Gallon 128 1 0 2 Cornelius Keg 640 5 1 Inventory Values Unit Cornelius Keg 6 18 2018 7 16 2018 8 13 2018 Black Cherry Soda 12 2 12 8 15 8 Ginger Ale 10 8 13 8 11 1 Orange Cream Soda 8 9 17 2 10 6 Root Beer 16 5 9 4 13 3 Vanilla Cream Soda 13 2 15 9 12 8 Produced 6 18 2018 7 16 2018 to to Unit Cornelius Keg 7 15 2018 8 12 2018 Black Cherry Soda 30 35 Ginger Ale 30 25 Orange Cream Soda 35 25 Root Beer 55 70 Vanilla Cream Soda 45 40 Sales Report Data Glass Sales Growler Sales Make it a Float Sales 6 18 2018 7 16 2018 6 18 2018 7 16 2018 6 18 2018 7 16 2018 to to to to to to 7 15 2018 8 12 2018 7 15 2018 8 12 2018 7 15 2018 8 12 2018 Black Cherry Soda 826 857 71 85 972 1015 Ginger Ale 685 705 67 70 Orange Cream Soda 750 818 68 86 Root Beer 1784 1852 171 190 Vanilla Cream Soda 1005 1013 117 127 Weekly Waste Logs 6 18 2018 6 25 2018 7 2 2018 7 9 2018 7 16 2018 7 23 2018 7 30 2018 8 6 2018 to to to to to to to to Department 6 24 2018 7 1 2018 7 8 2018 7 15 2018 7 22 2018 7 29 2018 8 5 2018 8 12 2018 Kitchen (gallons) 4 9 3 2 1 4 1 3 3 5 2 2 4 3 Truck 3 1 5 6 5 1 7 8 3 6 7 9 9 1 4 8 Total 8 8 6 7 2 11 9 6 9 12 9 11 3 9 1 Question 1 Calculate the ACTUAL usage in Cornelius kegs and gallons from 6 18 to 7 15 Beginning Produced Ending Actual Actual Unit Cornelius Keg Inventory Inventory Gallons Black Cherry Soda 12 2 30 42 2 42 2 8 44 Ginger Ale 10 8 30 40 8 40 8 8 16 Orange Cream Soda 8 9 35 43 9 43 9 8 78 Root Beer 16 5 55 71 5 71 5 14 3 Vanilla Cream Soda 13 2 45 58 2 58 2 11 64 Total 61 6 195 256 6 256 6 51 32 Question 2 Calculate the ounces and gallons SOLD from 6 18 to 7 15 Glasses (Ounces) Growlers (Ounces) Total (Ounces) Total (Gallons) Black Cherry Soda 11564 4544 16108 125 84375 Ginger Ale 9590 4288 13878 108 421875 Orange Cream Soda 10500 4352 14852 116 03125 Root Beer 24976 10944 35920 280 625 Vanilla Cream Soda 14070 7488 21558 168 421875 Make it a float 5832 0 5832 45 5625 Total 64868 31616 96484 753 78125 Question 3 Determine the amount of soda that is unaccounted for from 6 18 to 7 15 Category Gallons Total Actual Use Recorded Soda Waste Sold Theoretical Total (waste sold) Unaccounted for soda Unaccounted for soda (divide by theo total) Question 4 Determine the unaccounted for soda variance for each soda from 6 18 to 7 15 Actual Sold Variance Variance Black Cherry Soda 147 125 84375 21 15625 Ginger Ale 135 108 421875 26 578125 Orange Cream Soda 133 5 116 03125 17 46875 Root Beer 310 5 280 625 29 875 Vanilla Cream Soda 211 5 168 421875 43 078125 Question 5 The root cause of the unaccounted for soda is unclear Calculate the impact to Stacy's Sodas and Sliders for three scenarios from 6 18 to 7 15 In scenario 1, assume that all of the unaccounted for soda is due to product related costs In scenario 2, assume that half the unaccounted for soda is due to product related costs and the other half is due to uncollected revenue In scenario 3, assume that all the unaccounted soda is due to uncollected revenue Scenario 1 Scenario 2 Scenario 3 Unaccounted for soda (ounces) Portion resulting in lost revenue ( ) 0 00 50 00 100 00 Portion resulting in lost revenue (oz) Portion resulting in lost revenue (glasses) Lost Revenue Portion not resulting in lost revenue ( ) 100 50 0 Portion not resulting in lost revenue (oz) Soda standard cost per ounce Cost of portion not resulting in lost revenue Total cost of unaccounted for soda This is the expected increase in profit if the unaccounted for soda variance was brought to zero In cases where revenue is missing, revenue would be recorded In cases where revenue would not likely would have been generated, costs are brought to zero

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I posted the whole case study so that you could refer to it. I am struggling to understand this. I figured out a lot, but

I posted the whole case study so that you could refer to it. I am struggling to understand this. I figured out a lot, but I need help to understand where I put the ? marks. I do not want just the answer, I need to understand it, please :) Thanks so much in advance!

Case Scenario
At Stacy's Sodas and Sliders, Stacy serves craft sodas on draft which she prepares herself. Her beverage cost has always been a bit high. In the past she has not addressed her excessive beverage costs because, compared to other expenses within her operation, beverage cost is relatively low and implementing inventory controls is difficult because the soda is on draft. At the request of one of her investors, Stacy analyzed her beverage cost of sales over the last few months. In doing so, she noticed that her costs were over 20% higher than they should have been based on her standard cost calculation. This came as somewhat of a shock to Stacy; she is not sure exactly what could be causing the variances.
As Stacy contemplated the cause of the large discrepancy between her actual beverage cost of sales and her standard beverage cost of sales, she identified some acceptable reasons the two would not match. First, guests sometimes change their mind after a drink has already been poured; these drinks are normally discarded. Second, when a keg is first tapped or if a tap has not been used for a while, the soda supply lines will often build up foam inside which needs to be purged. Third, when loading the truck each day, there are sometimes kegs with a small amount of soda in them. In such cases, the soda is discarded to optimize space on the truck. In Stacy's view all these reasons were acceptable, but she did not know how much of the standard cost variance was represented in this acceptable waste. To find out, she asked all her staff to start pouring all discarded soda from purging the lines and voiding drinks into a bucket and log the results at the end of each shift. The waste figures would then be reported in a weekly waste log report. Stacy also started logging the soda that was discarded in the kitchen when loading up the truck. She reasoned that the total soda recorded in her waste logs would need to be added to the amount sold to come up with a theoretical total that represented the total amount of soda that should have been used. The difference between how much soda was actually used and this theoretical total is the amount of unaccounted for soda.
Any unaccounted for soda represents an inefficiency in her operation and an opportunity to increase Stacy's profitability. There are many unacceptable reasons why there may be soda that is unaccounted for. In the past, Stacy has created policies to prevent these and control her costs. These policies include the following: 1. Employees can only have one soda per shift served with their employee meal. All employee meals, including sodas, should be recorded using the POS software. 2. Complimentary drinks shall not be given to employee acquaintances or customers unless authorized by a manager. Such drinks should be rang in and coded to either in-store promotions or complimentary meals. 3. Drinks shall not be dispensed until the sale is recorded and payment is collected 4. All drinks should be filled to " from the rim (14 ounces) If followed, the measures above, along with proper waste logging, prevents any significant unaccounted for soda.
It is not that Stacy was indifferent about the overspending, she just figured her time was better spent focusing on controlling her food cost or labor which represent a much more significant portion of her total expenses. However, she recently came across an article in a brewing publication that gave her additional insights. The article stated that the true cost of unaccounted for beverages is often understated. This is because standard cost variances fail to account for the potential of missing revenue. For instance, assuming 100 drinks were poured, but never rang in, the product cost of those 100 drinks would be $22.57. This would cause the actual cost of beverages sold to be $22.57 higher than standard cost. Looking purely at standard cost variances however potentially understates the true financial impact of 100 drinks that were poured, but never rang in. If 100 drinks were poured for customers who paid for, or would have paid for, the drinks; Stacy is not only out the $22.57 in product cost, but $200.00 in revenue that was never collected as well! If instead, the 100 drinks were poured but never rang in because employees drank them while on shift, it is unlikely that these employees would have otherwise paid for them and thus the impact to Stacy is the $22.57 in product cost. How impactful reducing the unaccounted for soda variance to zero would be is largely contingent upon how much of the variance resulted from uncollected revenue.
Help Stacy analyze her beverage cost of sales by calculating the following: 1. The total amount of soda actually used (Question 1) 2. The total amount of soda sold (Question 2) 3. The total amount of soda that is unaccounted for (Question 3) 4. The amount of unaccounted for soda by flavor (Question 4) 5. The estimated impact of the missing soda on her profit (Question 5)

Other Relevant Information
A glass of soda is sold for $2.00 and contains 14 ounces. A growler is a jug made of glass used to transport draft soda or beer. A growler holds 64 ounces and a refill is sold for $6.00. In addition to sodas, Stacy also sells floats. Customers can make any craft soda into a float with an additional charge of $2.00. On the menu and in the POS system float upgrades are recorded as "Make-it-a-float". When a guest upgrades their drink to a float, approximately 6 ounces less soda is used to offset the added volume of the ice cream. Soda is prepared in 25 gallon batches. A batch is divided between 5 Cornelius kegs which each hold 5 gallons. Kegs are stored in a designated walk-in refrigerator in the kitchen where they cool and carbonate. When ready for use, the kegs are loaded onto the food truck in draft dispensing units called kegerators. Kegerators are keg refrigerators that have built-in soda lines and taps used to pour the soda. Early in the morning on the first day of the period, an inventory is taken of all items including the kegs. The kegs in the walk-in and on the truck are measured. Soda is inventoried by the keg; volumes are rounded to the nearest tenth of a keg. Inventories taken at the beginning of the period are used as the ending inventory of the prior period. Stacy also reports all the soda produced over the course of the period. As with inventory, volumes are recorded in kegs by flavor.

Case Assumptions
Vessel	Glass	Growler	Make it a float
Ounces	14	64	-6
Sales Price	$2.00	$6.00

Soda standard cost per ounce	$0.016122

Conversion Chart	Ounce	Gallon	Keg
Ounce	1	0.0078125	0.0015625
Gallon	128	1	0.2
Cornelius Keg	640	5	1

Inventory Values
Unit: Cornelius Keg	6/18/2018	7/16/2018	8/13/2018
Black Cherry Soda	12.2	12.8	15.8
Ginger Ale	10.8	13.8	11.1
Orange Cream Soda	8.9	17.2	10.6
Root Beer	16.5	9.4	13.3
Vanilla Cream Soda	13.2	15.9	12.8

Produced	6/18/2018	7/16/2018
	to	to
Unit: Cornelius Keg	7/15/2018	8/12/2018
Black Cherry Soda	30	35
Ginger Ale	30	25
Orange Cream Soda	35	25
Root Beer	55	70
Vanilla Cream Soda	45	40

Sales Report Data	Glass Sales	Growler Sales		Make-it-a-Float Sales
	6/18/2018	7/16/2018	6/18/2018	7/16/2018		6/18/2018	7/16/2018
	to	to	to	to		to	to
	7/15/2018	8/12/2018	7/15/2018	8/12/2018		7/15/2018	8/12/2018
Black Cherry Soda	826	857	71	85		972	1015
Ginger Ale	685	705	67	70
Orange Cream Soda	750	818	68	86
Root Beer	1784	1852	171	190
Vanilla Cream Soda	1005	1013	117	127

Weekly Waste Logs	6/18/2018	6/25/2018	7/2/2018	7/9/2018	7/16/2018	7/23/2018	7/30/2018	8/6/2018
	to	to	to	to	to	to	to	to
Department	6/24/2018	7/1/2018	7/8/2018	7/15/2018	7/22/2018	7/29/2018	8/5/2018	8/12/2018
Kitchen (gallons)	4.9	3	2.1	4.1	3.3	5	2.2	4.3
Truck	3.1	5.6	5.1	7.8	3.6	7.9	9.1	4.8
Total	8	8.6	7.2	11.9	6.9	12.9	11.3	9.1

Question 1: Calculate the ACTUAL usage in Cornelius kegs and gallons from 6/18 to 7/15
	Beginning	Produced	Ending	Actual	Actual
Unit: Cornelius Keg	Inventory	Inventory	Gallons
Black Cherry Soda	12.2	30	42.2	42.2	8.44
Ginger Ale	10.8	30	40.8	40.8	8.16
Orange Cream Soda	8.9	35	43.9	43.9	8.78
Root Beer	16.5	55	71.5	71.5	14.3
Vanilla Cream Soda	13.2	45	58.2	58.2	11.64
Total	61.6	195	256.6	256.6	51.32










Question 2: Calculate the ounces and gallons SOLD from 6/18 to 7/15
	Glasses (Ounces)	Growlers (Ounces)	Total (Ounces)	Total (Gallons)
Black Cherry Soda	11564	4544	16108	125.84375
Ginger Ale	9590	4288	13878	108.421875
Orange Cream Soda	10500	4352	14852	116.03125
Root Beer	24976	10944	35920	280.625
Vanilla Cream Soda	14070	7488	21558	168.421875
Make it a float	-5832	0	-5832	-45.5625
Total	64868	31616	96484	753.78125










Question 3: Determine the amount of soda that is unaccounted for from 6/18 to 7/15
Category	Gallons
Total Actual Use	?
Recorded Soda Waste	?
Sold	?
Theoretical Total (waste + sold)	?
Unaccounted for soda	?
Unaccounted for soda % (divide by theo total)	?









Question 4: Determine the unaccounted for soda variance for each soda from 6/18 to 7/15
	Actual	Sold	Variance	Variance %
Black Cherry Soda	147	125.84375	21.15625	?
Ginger Ale	135	108.421875	26.578125	?
Orange Cream Soda	133.5	116.03125	17.46875	?
Root Beer	310.5	280.625	29.875	?
Vanilla Cream Soda	211.5	168.421875	43.078125	?








Question 5: The root cause of the unaccounted for soda is unclear. Calculate the impact to Stacy's Sodas and Sliders for three scenarios from 6/18 to 7/15. In scenario 1, assume that all of the unaccounted for soda is due to product related costs. In scenario 2, assume that half the unaccounted for soda is due to product related costs and the other half is due to uncollected revenue. In scenario 3, assume that all the unaccounted soda is due to uncollected revenue.
	Scenario 1	Scenario 2	Scenario 3
Unaccounted for soda (ounces)	?	?	?
Portion resulting in lost revenue (%)	0.00%	50.00%	100.00%
Portion resulting in lost revenue (oz)	?	?	?
Portion resulting in lost revenue (glasses)	?	?	?
Lost Revenue
Portion not resulting in lost revenue (%)	100%	50%	0%
Portion not resulting in lost revenue (oz)	?	?	?
Soda standard cost per ounce	?	?	?
Cost of portion not resulting in lost revenue	?	?	?
Total cost of unaccounted for soda*	?	?	?
* This is the expected increase in profit if the unaccounted for soda variance was brought to zero. In cases where revenue is missing, revenue would be recorded. In cases where revenue would not likely would have been generated, costs are brought to zero.