[vinushki1234]

Hi sir, i have a doubt in the question, i hope you could clear it for me. The question is really long so i will only include the relevant information.

Claus Co purchased 75% of the voting capital of Rolph Co on 1 October 20X1.

Claus Rolph
Non-current assets
Property plant and equipment $3270 $1565

NOTES:

2. At the date of acquisition, the fair value of Rolph Co’s property, plant and
equipment was equal to its carrying amount with the exception of Rolph Co’s land which had a fair value of $200,000 in excess of its carrying amount. The fair value has not been reflected in Rolph Co’s individual financial statements.

Sir i want to know how to calculate the value for PPE and also if there is a revaluation surplus. I don’t have an answer to compare with as this is a question from a mock exam.

[vinushki1234]

Thank you Mr. Maffot. I understand now.

[vinushki1234]

On 1 February 20X8 Monye Co owned non-current assets with a carrying amount of $697,680. During the year ended 31 January 20X9 the following occurred:

(1) Land with a carrying amount of $350,000 was revalued to $425,000
(2) An asset with a carrying amount of $40,000 was disposed of for $30,000
(3) Depreciation of $82,400 was charged to the statement of profit or loss

The carrying amount of non-current assets at 31 January 20X9 was $720,490.

What amount should be shown for the purchase of non-current assets in the statement of cash flows for the year ended 31 January 20X9?

Hi Mr. Maffot. Can you please explain to me how to arrive at the answer to this question.
This is a question from the mock exam and i do not have an answer to compare with.

[vinushki1234]

Thank you very much. I really appreciate the help.

[vinushki1234]

I am struggling with question 20.17 in the revision kit to get option A as an answer. On what basis have they arrived at this option?
I highly appreciate if you can help.

Question 20.17.)

A company manufactures and sells four products. Details are as follows:
Product
P Q R S

Contribution per unit 16.0 14.5 17.6 19.0
Net profit per unit 4.6 4.8 5.2 5.0
Contribution per machine hour 5.0 4.8 4.4 3.8
Net profit per machine hour 1.4 1.6 1.3 1.0

Machine hours available in the next period will not be sufficient to meet production requirements. There are no product -specific fixed costs.

What should be the order of priority for production in order to maximise profit?

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