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Inventive Controls Ltd was incorporated and started

business early in #3954


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:General
ledger account AmountSales commissions……………………………………………..S 75,000Supervisory s
production manager………………………..65,000Executive salaries…………………………………………..
material purchases………………………………………….123,500Miscellaneous plant
supplies………………………………...........12,400Amortization, office
building………………………………………8,000Amortization, plant equipment……………………………....
taxes (1/5 for office building, 4/5 for plant
building)……5,000Sales…………………………………………………………….527,000Direct
labour……………………………………………………..62,000Raw material inventory, December 31,
2012……………………14,600Utilities expense (1/10 related to the office)…………………….20,000Gener
administration expenses…………………………………38,800At December 31, 2012, there was no work-i
process, but 20% of the units manufactured remained in ending finished goods inventor)'.
Inventive uses the straight-line method to calculate amortization.Required:a. Compute 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.View Solution:
Inventive Controls Ltd was incorporated and started business early in

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