Submission Guidelines 1. the document to be typed using 1.5 spacing justified 2. use Ariel font size 11 3. display a 2.5 cm margin for all sides 4. include page number 5. your word document should...

Submission Guidelines 1. the document to be typed using 1.5 spacing justified 2. use Ariel font size 11 3. display a 2.5 cm margin for all sides 4. include page number 5. your word document should include the Student ID, Student name and Campus Word Limit and Time Limit 2000 words (maximum) Late submission Unless an extension is granted, essays/assignments submitted after the due date will incur a 5% per calendar day penalty based on the maximum marks available for that assessment task. This penalty will run up to a maximum of 15%. Assessment tasks received more than three calendar days after the due or extended date will not be allocated a mark. Note: The 5% penalty will be incurred for each whole or part of a calendar day that the work is overdue. For extension of time for assessments, please go to the Assessment and Assignment Forms page of the ACU website. Timely submission is critical. Topics: Question 1- Week 4,5,6,7 Job costing, Process Costing and Activity based Costing Question 2 -Week 8-Budgeting ACCT204 Assessment 3 Page 2 of 5 Semester 1,2020 PART ONE Question 1 Visit the following websites of three organisations. http://www.entire.com.au http://www.mobil.com.au https://www.monash.edu Required: (a) From the information provided in the website and its most recent annual report, determine the costing system the organisation is most likely to be used. (3 marks) (b) Explain why you think that costing system is most logical (Hint: observe its main activity/activities, type of inventory accounts etc) (6 marks) (c) Explain the benefits to be gained from using the costing system mentioned in (a) above. (6 marks) (d) Discuss the ethical issues in the use of costing system you have selected (Hint: what elements of these systems require judgement or choice by management and therefore leave open the possibility of manipulation) (3 marks) Use the following table to answer above question. QUESTION ENTIRE EXXON MOBIL MONASH a.Costing system most likely to be used b. Why c. Benefits gained d. Ethical issues ACCT204 Assessment 3 Page 3 of 5 Semester 1,2020 PART TWO Question 2 You are the accountant for Bellyful Restaurant. Following are assumptions about sales for the coming month. • Bellyful Restaurant offers three basic meals: noodle bowls, egg rolls, and rice bowls. • Each meal can be prepared with several different meats or with vegetables only. • Costs and prices are similar for all varieties of each meal. • Prices for noodles bowls are $4 each, egg rolls are $3 each, and rice bowls are $3.50 each. Estimated sales for the next month are 200 noodle bowls, 100 egg roll meals, and 500 rice bowls per day. PART 1: Revenues budget Required: (a) Prepare a revenue budget for the next month assuming it is 30 days long. (3 marks) (b) Discuss two (2) factors that affect the budgeted volumes of meals. (2 marks) PART 2: Direct materials budget The owner of Bellyful Restaurant studied the cost of direct materials for each type of meal. He estimates that noodle bowls use about $1 in direct materials, egg rolls use about $0.75, and rice bowls use about $0.90. Food is purchased daily to ensure high quality. Beginning and ending inventory amounts are minimal. Required: (a) Prepare a direct materials usage budget and a direct materials purchases budget. (4 marks) (b) Discuss reasons why actual costs might be different from budgeted costs in part (b). (2 marks) (c) Suppose the prices of food ingredients increase. Identify possible ways the owner could keep food costs within the budget. Discuss drawbacks for each of your ideas. (2 marks) ACCT204 Assessment 3 Page 4 of 5 Semester 1,2020 PART 3: Direct labour budget The owner of Bellyful Restaurant employs cooks and cashiers. The cashiers take orders and collect payment, transfer food from the cooks to customers, and clean tables. Cooks are paid $10 per hour, and cashiers are paid $8 per hour. Bellyful Restaurant operates four shifts: 10 to 2, 11 to 2, 2 to 10, and 5 to 8. Weekdays and weekends are staffed similarly. Following are the shifts and required workers. Required: (a) Prepare a labour budget showing hours and costs for a month. (Assume 30 days per month.) (4 marks) (b) Discuss reasons why actual labour costs might turn out to be different from budgeted costs in part (a). (2 marks) (c) Identify possible ways the owner could reduce labour costs. Discuss possible drawbacks for each of your ideas. (2 marks) PART 4: Overhead budget Bellyful Restaurant does not separately account for production versus general overhead. Fixed overhead includes production overhead as well as support services and general administration. Variable overhead includes labour-related costs such as payroll taxes and employee benefits. Bellyful Restaurant has estimated variable overhead costs as $2.50 per direct labour hour. Following are the estimated fixed overhead costs for one month: Required: (a) Prepare an overhead costs budget for one month. (3 marks) ACCT204 Assessment 3 Page 5 of 5 Semester 1,2020 (b) Identify possible ways the owner could reduce overhead costs. Discuss possible drawbacks for each of your ideas. (2 marks) PART 5: Budgeted statement of profit or loss Refer to the information from the preceding budgets. The income statement for Bellyful Restaurant consists of revenues less direct costs (direct materials and direct labour) to determine the gross margin. Then the overhead costs are deducted to determine operating income. Required: (a) Prepare a budgeted income statement ignoring income taxes. (4 marks) (b) Bellyful Restaurant’s owner would like to increase profits from the store. Suggest several possible ways to accomplish this goal. Explain your reasoning. (2 marks)