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.

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Definitions:

Skinner

B.F. Skinner was an influential American psychologist known for his work on behaviorism and developing the theory of operant conditioning.

Thorndike

An American psychologist famous for his work on learning theory and the law of effect, which states that behaviors followed by positive outcomes are likely to recur.

CS Without US

This refers to a condition where a conditioned stimulus (CS) is presented without pairing with an unconditioned stimulus (US), generally leading to extinction in classical conditioning.

Conditioning Process

A learning process in which an individual learns to associate a specific stimulus with a particular response.