Inventive Controls Ltd

question 17

Essay

Inventive Controls Ltd.was incorporated and started business early in January 2016 to manufacture electronic control devices to monitor traffic.Inventive purchased a small manufacturing plant and office building in a new industrial park and was in operation immediately.General ledger account balances at December 31,2016 are as follows:

At December 31,2016,there was no work-in-process,but 30% of the units manufactured remained in ending finished goods inventory.Inventive uses the straight-line method to calculate depreciation.
Required:
a.Calculate the value of cost of goods sold and ending finished goods inventory under IFRS.
b.Prepare an income statement for Inventive for the year ended December 31,2016.

---

Definitions:

Tibia

The larger and stronger of the two bones in the lower leg, commonly referred to as the shinbone.

Fibula

A thin, elongated bone situated on the outer aspect of the tibia, within the lower portion of the leg.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, also known as the collarbone.

Radial Notch

A depression or groove on the ulna bone that articulates with the head of the radius to form part of the elbow joint.