Unit 4 Monitoring OperationsUsing the following information complete the questions below:Pat needs your help reconciling in monthly inventory. Use the information given to find the dollar difference between standard food costs and actual food costs for the month of July. Provide at least two potential explanations for the difference.Closing inventory on June 30, 2015 $140,000Food Purchased in July $275,000Total July Food Sales: $1,200,000Standard Food Cost Percentage 23%Alcohol transferred to Kitchen from Bar $1,900Food transferred to the Bar from Kitchen $1,200Value of Inventory Counted on July 31 $138,000Given the following figures from Connies Kitchen, determine the cost of food sold.Purchases $69,543.36Closing Inventory 20,963.71Gratis to the bar 78.73Promotion Expense 181.17Transfers from Kitchen to Other Units 637.38Opening Inventory 20,687.40Transfers to Kitchen from Other Units 986.45Cooking Liquor 543.18Employees Meals:Executives: $2,033.75 sales value; recent average food cost percent: 21%Other staff 1,422 lunches @ $3.801208 dinners @ $4.60