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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