On 1 May 2022, Ocean Blue Ltd Enters a Forward

question 19

Multiple Choice

On 1 May 2022, Ocean Blue Ltd enters a forward exchange contract to sell US$180 000 in 8 months' time at 31 December 2022. The relevant exchange rates are: $\begin{array}{|l|c|c|}\hline &\text { Spot Rate } & \begin{array}{c}\text { Forward Rate (for } \\\text { 31 Dec. 2022) }\end{array} \\\hline 1 \text { May 2022 } & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 1.00\end{array} & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 1.05\end{array} \\\hline \text { 30 June 2022 - end of reporting period } & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 0.98\end{array} & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 1.02\end{array} \\\hline \begin{array}{l}31 \text { December } 2022 \text { - contract settlement } \\\text { date }\end{array} & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 0.95\end{array} & \begin{array}{l}\text { US } \$ 1.00= \\\mathrm{A} \$ 0.95\end{array}\\\hline\end{array}$ The journal entry required at 30 June 2022 to record any foreign exchange gain or loss on the forward contract is:

• A) DR Loss of forward contract A$5400; CR Forward contract A$5400
• B) DR Loss of forward contract A$5042; CR Forward contract A$5042
• C) DR Forward contract A$5400; CR Gain on forward contract A$5400
• D) No entry is required.

Recognize the role of customization and value-added activities in warehouse layouts.

Learn the methodology of assembly line balancing and its impact on production efficiency.

Understand the heuristic rules for task assignment in assembly line balancing.

Understand the principles of capital costing and how to apply them to project analysis, including identifying relevant costs.

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Definitions:

Intrinsic Motives

Internal drives for behavior that come from personal satisfaction or the joy of doing a task, rather than external rewards.

Drive Level

The intensity of an urge or motivation that propels an individual towards a certain behavior to satisfy a need or achieve a goal.

Arousal

Refers to the physiological and psychological state of being awoken or alert, typically involving the activation of certain brain pathways and bodily responses.

Optimal Level

Refers to the most favorable point, degree, or amount of something for a particular purpose or outcome.