Republic of the Philippines
Department of Education
TEACHER: Maria Rosario G. Pedamato
GRADE LEVEL & SECTION: Grade 11-ABM
I. Objective
A. Content Standards
B. Performance Standards
C. Learning Competencies)
Objectives
Content Knowledge and Pedagogy
(Within and Across)
II. SUBJECT MATTER
A. References
1. Teacher’s Guide Pages
Regional Office No. VIII
Division of Northern Samar
PAMBUJAN NATIONAL HIGH SCHOOL
Pambujan, Northern Samar
LESSON PLAN for CLASSROOM OBSERVATION in
Fundamentals of Accountancy Business, and Management 1
TEACHING DATE AND TIME: May 31, 2023/ 3:00-4:00
QUARTER: 4th
Annotations
The learners demonstrate an understanding of the accounting cycle of a
merchandising business.
The learners are able to complete the Accounting cycle of a Merchandising
business.
Describes the nature of transactions in a merchandising business.
ABM_FABM11
At the end of this lesson you should be able to:
1. Define Merchandising Business
2. Illustrate the nature of transactions of a merchandising business
3. Compute the Costs of Goods Sold and Net Income of a merchandising
business
Grade 11-FABM 1
describes the nature of transactions in a service business.
Grade 11- Entrepreneurship
Manifest understanding of starting and operating a simple business
(CS_EP11/12B-ENTREP-Iva-i-1)
Nature of Merchandising Business.
 2. Learner’s Materials Pages Quarter 4-Module 3: Nature of Transactions in a Merchandising Business
developed by; DepEd –Schools Division of Negros Oriental Region VII

3. Textbook Pages pp.

4. Additional Materials from Offline LRMDS
Learning Resources (LR)
Portal
B. Other Learning Resources IM’s (power point presentation, videos, pictures, handouts)
III. PROCEDURES
1. PREPARATION
A. Prayer
B. Checking of
attendance
2. DEVELOPMENTAL Objective 1- Applied knowledge of content
ACTIVITIES within and across curriculum teaching areas.
Questions: • Integration of the previous lesson, nature
of transaction of a service business.
 Review Previous Lessons  Can you remember our topic last meeting?
 What is an Income Statement and Balance Sheet? Objective 2- Used a range of teaching strategies
that enhance learner achievement in literacy and
numeracy skills.
• Learners will give a recap about their
understanding of previous lesson. They will give
the definition of Income Statement and Balance
Sheet.
Video presentation (Gaisano Grand Mall Jingle Song)
3. MOTIVATION

Objective 8- Selected, developed, organized and

Questions:
 Are you familiar with what you heard/saw?
 What do you call that kind of sound?
 What are the stores that you can see inside the mall?
used appropriate teaching and learning
resources, including ICT, to address learning
goals.
 Learners will have an understanding on the
video presentation, they will be asked
some questions for their advance
knowledge about the lesson.
  Can you identify the type of business activity those stores in
Gaisano Grand Mall

4. ACTIVITY Learners will be divided into 4 groups Objective 3- Applied a range of teaching
strategies to develop critical and creative
Use of Game “FACT” or “BLUFF” thinking, as well as other higher-order thinking
skills.
Directions: Write FACT if the statement is correct and BLUFF if not.  Learners will do the activity by group
wherein they will identify the statement
1. A merchandise is an enterprise that buys and sells goods to earn profit. BLUFF
into Fact or Bluff. This activity will help
2. Wholesaler refer to one who sells products to end users. BLUFF the learners develop their creative thinking
3. Gaisano mall in Catarman N. Samar, is an example of merchandising company. as well their higher order thinking skills.
FACT
4. A retailer is the one who buys in bulk or volume directly from a manufacturer
and sells the goods to a wholesaler. BLUFF Objective 5- Managed learner behavior
5. The operating cycle for a merchandising company starts with having a cash constructively by applying positive and non-
available, buying merchandise inventory, selling the merchandise to customers, violent discipline to ensure learning-focused
and finally collecting payment from customers. FACT environments.
Before the activity starts, I reminded them
about the classroom rules and also the
standards in conducting the group activity.
These will ensure learning-focused
environment. Aside from that, I always
appreciate leaners response by giving them
positive feedback like VERY GOOD
everytime they respond to what I ask to
them.
5. ANALYSIS Use of Game “What’s the Missing Letter?” Objective 9- Designed, selected, organized and
used diagnostic, formative and summative
NATURE OF TRANSACTIONS OF A MERCHANDISING BUSINESS assessment strategies consistent with curriculum
requirements.
 I used discovery learning approach to
M R C H N D S N G C M P N Y
assess the learner’s strengths, weaknesses,
knowledge and skills prior to instruction.
M E R C H A N D I S I N G CO M P A N Y

Is a type of business that buys and sells merchandise/goods to earn profit.

Examples:
• Rose Pharmacy
• Puregold
• Ace Hardware
• Grocery Stores

M R C H N D S E
 M E R C H A N D I S E
-(or merchandise inventory) refers to goods that are held for sale to customers in
the normal course of business. This includes goods held for resale. For example:
• Candies, canned goods, noodles sold at a grocery stores
• Juice, biscuits sold in a grocery store
• Medicines sold in a pharmacy

TYPES OF MERCHANDISERS

W H L S L R

W H O L E S A L E R
– one who buys in bulk or volume directly from a manufacturer and sells the
goods to a retailer

R T I L R

R E T A I L E R
– one who sells products to end users

OPERATING CYCLE OF A MERCHANDISING BUSINESS

 Merchandising Company operating cycle (cash to cash) involves:
1. Buy merchandise inventory
2. Sell inventory to customer
3. Obtain Accounts Receivable/ Collect from Customer
4. Receive cash

6. ABSTRACTION Use of Game “Let’s Match!” Objective 2- Used a range of teaching strategies
Directions: Match Column A to Column B. that enhance learner achievement in literacy and
numeracy skills.
Column A Column B  Learners will perform the game “Let’s
1. The total cost of merchandise sold a. Operating Match”. This strategy will help them
during the period. c Expenses enhance their knowledge and learning
2. A merchandisers primary source b. Gross Profit ability in literacy and numeracy skills.
of revenue. f
3. These are the expenses incurred in the c. Cost of Goods
process of earning sales. a Sold
4. Is the total sales of a company minus d. Net Income
cost of goods sold. b
5. It is a merchandise net profit after e. Utilities Expense
deducting cost of goods sold f. Sales
and operating expenses. d

Questions:
-What is an Income Statement of a merchandising business?
-What are its composition?

Income Statement -also called the Profit and Loss Statement is a formal
statement showing the financial performance of the business for a given period of
time.

-The income statement typically includes revenue or sales, cost of goods sold and
operating expenses.

7. APPLICATION Income Measurement process for merchandising business: Objective 1- Applied knowledge of content
within and across curriculum teaching areas.
Sales xxx  Integration to Entrepreneurship, being an
Less: Cost of Goods Sold xxx entrepreneur you should have the
Gross Profit xxx knowledge not only in your business but
Less: Operating Expenses xxx also on how your business will earn profit.
Net Income (loss) xxx
 The examples are also contextualized for
them to fully understand the lesson.
Sales- A merchandiser’s primary source of revenue.

Cost of Goods Sold- the total cost of merchandise sold during the period.

Gross Profit- is the total sales of a company minus the total cost of goods sold.

Operating Expenses- expenses incurred in the process of earning sales.

-Examples are: Rent Expense, Delivery Expense, Utilities Expense

Example:

1. Katrina Gen. Merchandise has started her business operations in Brgy. 6,

Pambujan N. Samar which involves buying and selling of Laptop. Upon starting
her business operations, she made the following transactions:
•Katrina Gen. Merchandise had a beginning inventory of 10 units of Laptop
amounting to P150,000.
•Purchased 20 units of Laptop @ P15,000/unit or P300,000.
•At the end of the month, she had an Inventory of Laptop for 10 units, amounting
to P100,000

Required:

Compute for the Costs of Goods Sold

Merchandise Inventory, beginning P 150,000

Add: Purchases 300,000
Cost of Goods Available for Sale 450,000
Less: Merchandise Inventory, end 100,000
Costs of Goods Sold 350,000

2. Listed below are some of the accounts relating to the income of BENEMARK
Gen. Merchandise which involves in buying and selling of cellphone, in Brgy. 8,
Pambujan, Northern Samar for the three-month period ended December 31, 2020.

Sales P800,000 Rent Expense P 7,000

 Purchases 400,000 Salaries Expense 25,000
Merchandise Inventory, beginning 200,000
Utilities Expense 5,000
Merchandise Inventory, ending 180,000

Required:
1. Compute the Costs of Goods Sold
2. Compute the Net Income

Merchandise Inventory, beginning P200,000

Add: Purchases 400,000
Cost of Goods Available for Sale 600,000
Less: Merchandise Inventory, end 180,000
Costs of Goods Sold 480,000

BENEMARK Gen. Merchandise

Income Statement
December 31, 2020

Sales P800,000
Less: Cost of Goods Sold 480,000
Gross Profit 320,00
Less: Operating Expenses
Salaries Expense 25,000
Rent Expense 7,000
Utilities Expense 5,000
Net Income 283,000

IV. ASSESSMENT I. MULTIPLE CHOICE. Choose the letter of the correct answer.

1. Which of the following establishments is a merchandising business?

a. Barber Shop c. Dental Clinic
b. Restaurant d. Pharmacy

2. It is a type of business activity that buys and sells goods to earn a profit.
a. Service Business c. Merchandising Business
 b. Manufacturing Business d. None of these

3. The following are part of the operating cycle of a merchandising business

except _________.
a. receive Cash
b. obtain Accounts Payable
c. buy Merchandise Inventory
d. sell Inventory

4. It refers to the total cost of merchandise sold during the period.

a. Beginning Inventory c. Ending Inventory
b. Cost of Goods Sold d. Operating Expenses

5. It is a type of merchandiser who sells products to end users.

a. Buyer c. Wholesaler
b. Retailer d. Customer

II. Listed below are the balances of some of the accounts of Aling Brenda Gen.
Merchandise which involves in buying and selling of Printer, in Zone 7, San
Roque, Northern Samar for the three-month period ended March 31, 2020.

Sales P400,000 Rent Expense P10 ,000

Purchases 200,000 Salaries Expense 15,000
Merchandise Inventory, beginning 100,000
Taxes and Licenses 5,000
Merchandise Inventory, ending 50,000

Instructions:

1. Compute the Costs of Goods Sold

2. Compute the Net Income

V. Remarks Directions: Make a reflection paper about what have you learned from today’s
lesson. Write it in your notebook.
VI. Reflection
A .No.of learners who earned 80%
in the evaluation
B. No.of learners who requires
additional acts.for remediation who
scored below 80%
C. Did the remedial lessons work?
No.of learners who caught up with
the lessons
D. No.of learners who continue to
require remediation
E. Which of my teaching strategies
worked well? Why did this work?)
F. What difficulties did I encounter
which my principal/supervisor can
help me solve?
G. What innovations or localized
materials did I used/discover which
I wish to share with other teachers?

Prepared by: OBSERVER:

MARIA ROSARIO G. PEDAMATO LESLIE G. LOBOS

SHS TII Master Teacher III