1. What does The Cheesecake Factory’s inventory include and where is it located on its financial statements?
Original blog posting (January 17, 2017)

2. The Cheesecake Factory
Over 200 restaurants and two bakeries in the US
Inventories include:
Restaurant food and supplies
Bakery raw materials
Bakery finished goods
Uses average cost basis at restaurants
Uses FIFO cost basis at bakeries

3. Question 1
Give an example of an item that could be found in each of the following types of inventory for The Cheesecake Factory:
Restaurant food and supplies
Bakery finished goods and work in progress
Bakery raw materials and supplies

4. Question 2
Identify the financial statement where The Cheesecake Factory inventory would be found.

5. Question 3
Identify the financial statement where The Cheesecake Factory cost of sales would be found.

6. Question Recap
Give an example of an item that could be found in each of the following types of inventory for The Cheesecake Factory:
Restaurant food and supplies
Bakery finished goods and work in progress
Bakery raw materials and supplies
Identify the financial statement where The Cheesecake Factory inventory would be found.
Identify the financial statement where The Cheesecake Factory cost of sales would be found.

7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at