REVIEWER ONLY

I. ntification : The illustration shows the normal operating cycle of the merchandising
business. Complete the process according to its sequence. (2points each)

2.___________

1________ 3___________

4___________

I. TRUE OR FALSE
______________1. Merchandise inventory end of the previous calendar year will be the beginning
inventory of the current year.
______________2. Cost of sales is also the total cost of goods available for sale.
______________3. Purchases deducted with Purchase discounts and returns will result in the Gross
purchase.
______________4. Freight out is added to the total purchase before deducting the discounts and
returns.
______________5. Total sales is also the sales revenue.
______________6. Adding merchandise inventory end of the previous year and the net purchases
will result to the total goods available for sale.
______________7. Total goods available for sale less Cost of sales will result to the amount of
merchandise inventory end of the current year.
______________8. Cost of goods sold and cost of goods available for sale are not the same.
______________9. Merchandise inventory end are the goods that remained unsold.
______________10. Merchandising is easier than service business in terms income preparation.
______________11. Net Profit means the company’s resources has increased which will also give
rise to increase in the Capital.
_____________12. Net loss means that the company’ resources has decreased which will also
decrease the Capital.
_____________13. The higher the amount of the cost of sales, the lesser the ending inventory will
be.
_____________14. The higher the merchandise inventory beginning will result in higher goods
available for sale.
_____________15. The higher the amount of operating expenses the lower the profit will be.
 REVIEWER ONLY

II. PROBLEM SOLVING: Carefully read each problem. Answer the requirement, show
your computation, avoid erasure. DOUBLE RULE your final answer. Good luck, do your
best.

1. XYZ Trading has the following record.

Jan. 2021 Inventory of P450,000.On Feb.2021 Purchases amounted to 125,000 with
Discount of 5% . XYZ returned worth of 3,000 product due to wrong specifications. The total
cost of products sold is P250,000.

a. Compute for the Net Purchase

b. Compute for the Total Goods Available for Sale

c. Compute for the Merchandise Inventory for December 31, 2021

d. Compute for the Purchase discount.

Prepared by: Checked by: Noted by: Approved by:

Melinda A. Tamba Divine Grace C. Castañeda Philip C. Dimaculangan Jonathan D. Villaruz

Subject Teacher Area Head- TLE Asst. H. S. Principal H.S. Principal