Inventive Controls Ltd

question 52

Essay

Inventive Controls Ltd. was incorporated and started business early in January 2012 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, 2012 are as follows:
At December 31, 2012, 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, 2012.

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Definitions:

Employee Morale

is the overall satisfaction, outlook, and feelings of well-being that an employee experiences at their workplace.

Decision-making Process

A systematic series of steps taken by individuals or organizations to identify and evaluate options for making choices among alternative courses of action.

Organizational Structures

The systems of authority, communication, and allocation of responsibilities within a company or an organization.

Cultural Effectiveness

The ability to understand, communicate with, and effectively interact with people across cultures.