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Sydney Ltd is a manufacturer of sheepskin products in Australia

Accounting

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Sydney Ltd is a manufacturer of sheepskin products in Australia.

It is a wholly-owned subsidiary of a Hong Kong company, Wan Chai Ltd. The following assets are held by Sydney Ltd at 30 June 2020.


Plant
Cost A$
Useful life (years)
Acquisition date
Exchange rate on acquisition date (A$1 = HK$)
Tanner
40,000
5
10/8/16
5.4
Benches
20,000
8
8/3/18
5.8
Presses
70,000
7
6/10/19
6.2                             

Plant is depreciated on a straight-line basis, with zero residual values. All assets acquired in the first half of a month are allocated a full month's depreciation.
Inventories:
·        At 1 July 2019, the inventories on hand of $25 000 was acquired during the last month of the 2018-19 period.
·        Inventories acquired during the period ended 30 June 2020 were acquired evenly throughout the period. Total purchases of $420 000 were acquired during that period.
·        The inventories of $30 000 on hand at 30 June 2020 was acquired during June 2020.




Relevant exchange rates (quoted as A$1 = HK$) are as follows:
Average for June 2019
7.2
1 July 2019
7.0
Average for 2016 -17
7.5
Average for June 2017
7.7
30 June 2017
7.8

Required:
Assuming the functional currency for Sydney Ltd is the A$, calculate:
(i)                The balances for the plant items and inventory in HK$ at 30 June 2020
(ii)              The depreciation and cost of sales amounts in the statement of profit or loss and other comprehensive income for 2019-20.