Inventive Controls Ltd At December 31, 2019, There Was No Work-In-Process, but 30

question 87

Essay

Inventive Controls Ltd. was incorporated and started business early in January 2019 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, 2019 are as follows:
$$\begin{array} { l | r | } \hline \text { Sales commission } & 62,000 \\\hline \text { Supervisory salaries, production manager } & 66,000 \\\hline \text { Executive salaries } & 120,000 \\\hline \text { Raw material purchases } & 136,500 \\\hline \text { Miscellaneous plant supplies } & 13,700 \\\hline \text { Depreciation, office building } & 7,900 \\\hline \text { Depreciation, plant equipment } & 9,900 \\\hline \text { Property tax (80\% for office building; 20\% for plant building) } & 4,400 \\\hline \text { Sales } & 850,000 \\\hline \text { Direct labour } & 64,000 \\\hline \text { Raw material inventory, Dec } 31,2019 & 13,600 \\\hline \text { Utilities expense (60\% related to office) } & 19,000 \\\hline \text { General administrative expense } & 42,300 \\\hline\end{array}$$ At December 31, 2019, 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, 2019.

Identify factors that contribute to obtaining decent work according to the Psychology of Working Theory.

Appreciate the intersection of work and relationships in the conceptualization of work.

Understand the focus of change as proposed by the Psychology of Working Theory, including both individual and institutional levels.

Recognize the evolution of terminology from "career counseling" to "counseling for work and relationships".

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Definitions:

Economies of Scale

Businesses enjoy cost savings resulting from their size of operations, wherein the cost per unit produced usually drops with greater scale.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, access to technology, and strict regulations.

Market Power

The ability of a firm or group of firms to influence or control prices or output in a particular market.

Barriers to Entry

are obstacles that make it difficult for new competitors to enter an industry, including high startup costs, strict regulations, and established brand loyalty.