The Village Restaurant adjacent to the old Palace Cinema was established in 1960. It soon became a hot spot to

dine and be seen at with many live bands and music performers having made their early starts to their careers

whilst performing at the Village. In the '60s and 70's the Village was an integral part of Karachi's nightlife where

families and friends gathered to dine and dance the evenings away.

To add to the live entertainment and Alfresco dining with its quaint cabanas and private dining rooms the Village

boasted a menu with an array of items to pick from. Though still famous for its barbeque the restaurant also offers

a wide selection of Pakistani dishes to choose from. It is often heard that the old-style Seekh Kebabs at the Village

are still the best available in Karachi.

The restaurant also has two private air-conditioned dining halls and an open-air premise which can be booked for

your private parties and marriage ceremonies. The restaurant one of the oldest surviving in Karachi has its rich

share in Karachi's history.

The key factors communicated by the company are

It has 100 employees.

Rooftop populates 20 waiters whereas indoors 20 waiters.

4 Chefs and 16 support or cooking staff who are helping chefs

Other Staff members are 40 people. These people involve in administrative activities.

Additional Information

Direct material for Rs. 400,000

Each Chef salary per month is Rs. 100,000

Each cooking staff salary per month is Rs. 50,000

Each other staff salary per month Rs. 70,000

Kitchen Equipment for Rs.1000,000

Deprecation of Kitchen Equipment 10% of cost

Factory Overheads Rs. 200,000

Rent expense of Restaurant for Rs. 400,000 per month

Monthly revenue earned 5.0 million

Required

You are the Cost Accountant of "Village restaurant". Recent situation of the whole world facing challenges due to

COVID-19. The Village restaurant wants to reopen the restaurant or its business operations accordingly.

a) You have to prepare the statement of COGM based on given data.

b) You have to prepare revised COGM statement which you suggest what would company

change the cost allocation and which cost can be avoid and what cost will be added.

c) You have to prepare the statement of comprehensive income.

d) You have to prepare revised statement of comprehensive income and what will be changed

due to COGM.

e) Comments on how village maintains the financial performance what and why things need

to change for inflating the bottom line.