Solution-Entering into the forward contract the company

Entering into the forward contract the company made a profit

Assignment Help Cost Accounting

Reference no: EM132562679

Question 1: An Australian gold mining company was impressed that it could sell gold one year forward at a price of US$370 per ounce when the current spot price was US$300 per ounce. The company considered it unlikely that the spot price would rise above US$350 per ounce over the next twelve months and therefore sold 15,000 ounces forward at US$370 per ounce. By the contract settlement date the spot price of gold had risen to US$400 per ounce and the company had produced 10,000 ounces of gold at a cost of US$290 per ounce. By entering into the forward contract the company made a profit/loss of:

Reference no: EM132562679

Questions Cloud

BUS407 Project Management Assignment : BUS407 Project Management Assignment Help and Solution, Emirates College of Technology - Assessment Writing Service - Draw the project AON diagram and compute

Find what is the nominal annual yield : If a firm sells 1 December 90-day BAB (Bank's Accepted Commercial Bills) futures contract at 92.02, what is the nominal annual yield and show the calculation

What is the monthly interest expense for the month of may : O/D for 9 days and then falls to $27,000 O/D for the remaining days in the month. What is the monthly interest expense for the month of May?

What the cost of forgoing the cash discount is : ABC company receives trade credit for the purchase of $40000 worth of goods, marker '2/10, net 35'. What The cost of forgoing the cash discount is

Entering into the forward contract the company made a profit : The company had produced 10,000 ounces of gold at a cost of US$290 per ounce. By entering into the forward contract the company made a profit/loss of

What minimum price s air should charge a standby passenger : What is the minimum price S Air should charge a standby passenger to cover the incremental costs associated with that passenger?

Find how many cakes will break even : A baker sells her cakes at Php 285 per piece, How many cakes will break even? With how many cakes will she enjoy a profit of Php 5,000? A loss of Php 1,000?

How many earphones must be sold to realize a profit : How many earphones must be sold to realize a profit of Php150,020? What is the profit from the sale of 250 units? What is the break-even quantity?

What is the equilibrium quantity and price : Demand functions for yogurt ice cream be given by S(x) = 0.4x and D(x) = 100 - 0.4x, respectively. What is the equilibrium quantity and price?

User Account

All Pages

Entering into the forward contract the company made a profit

Reference no: EM132562679

Reference no: EM132562679

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT