The question is attached

International accouting / IFRS

Sultan Company produces two different products (Hall & Dole). The production cycle for the first product (Hall) takes on average two months to complete, but product Dole has a production cycle of three months. Both products were introduced to the market few years ago. The Company's normal capacity per production cycle for product Hall is 30,000 units and for product Dole is 50,000 units. The monthly manufacturing fixed overhead costs are as follows: Costs Separate manufacturing overhead costs Common fixed costs Total fixed costs Product Hall AED 15,000 Product Dole AED 10,000 Total AED 25,000.000 AED 31,666.667 AED 56,667.667 The Company allocates common fixed costs and separate fixed costs t based on the normal capacity of each product. Available Information on the Company's actual production for 2016 was as follows: item Product Hall Product Dole Number of units produced during the year 150,000units 210,000unit s Number of units sold 140,000units 200,000unit s Raw material purchased and used during the year AED 350,000 AED 405,000 Transportation and handling costs of material AED 10,000 AED 15,000 Total direct labor used (3,000hrsXAED50 for Hall, and 1,200hrsXAED50 for AED 150,000 AED 60,000 Dole) Allocated variable overhead AED 150,000 AED 210,000 Storage costs of finished products in anticipation of customers' orders AED 20,000 AED 25,000 Interest costs on borrowed funds to pay for purchased raw material AED 35,000 AED 65,000 Cost of labor hours wasted during production AED 5,000 AED 4,000 The Company's policy allows for normal waste of 2% of labor hours. The sale price of a unit sold of product Hall was 7 dirhams and AED 6 for a unit of product Dole. The Company follows the rules of IFRS for the purposes of preparing its financial statements. On December 31, 2016, the Company estimated the selling costs for existing unsold finished goods to be 10,000 dirhams for Product Hall and AED 8,000 for product Dole. Required: a Analyze the above information and determine the amount of the inventory of finished goods that would be reported on the balance sheet at December 31, 2016 according to IAS # 2. (5 marks) b Construct the necessary journal entries to record the above transactions and events assuming the Company uses the perpetual inventory system (2 marks)