What does The Cheesecake Factory’s inventory include and where is it located on its financial statements?

photo of a Cheesecake Factory

The Cheesecake Factory at Crocker Park In Westlake, Ohio

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants and for sale to a wide variety of wholesalers and retailers. The Cheesecake Factory’s inventories consist of restaurant food and supplies, bakery raw materials, and bakery finished goods. The Cheesecake Factory uses the average cost basis to account for its inventory at its restaurants and the FIFO cost basis at its bakeries.


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

Instructor Resources

These resources are provided to give the instructor flexibility for use of Accounting in the Headlines articles in the classroom. The blog posting itself can be assigned via a link to this site OR by distributing the student handout below. Alternatively, the PowerPoint file below contains a bullet point overview of the article and the discussion questions.

  • Student handout (pdf) (word) (contains entire blog posting + discussion questions)
  • PowerPoint file (brief article overview + discussion questions)

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About Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Education.

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