Republic of the Philippines

SORSOGON STATE COLLEGE

Bulan Campus
Bulan Sorsogon

FINAL EXAMINATION 2021

ACCOUNTING FOR BUSINESS COMBINATION MICHAEL B. BONGALONTA,CPA,MICB,MBA,MRITax, DBA

Important instructions before taking the test:

a. You are given until 1 PM to accomplish the examination.

b. Write all the final answers in a separate sheet (1 to 34).
c. All the computations should be written in separate pages or papers which should be attached to
the sheet containing your final answers.
d. You may encode your answers or may have it hand written using these test papers or using
yellow papers.
e. The softcopies or the photos of your answers should be placed in one (1) folder with your
complete name and course as the folder name then send it to your representative not later than 2
P.M., January 23, 2021 for consolidation.
f. The representative must consolidate it into a single folder with the course and year as the folder
name. The folder shall contain the individual folders submitted by the examinees.
g. The consolidated folders shall be submitted to [email protected].
h. This will serve as basis of your class performance.
i. Should you have clarifications, please feel free to reach me via messenger or my mobile number
0919-009-0048.
j. HONESTY SHALL BE STRICTLY OBSERVED. IT IS BETTER TO FAIL
WITH HONOR THAN TO SUCCEED BY FRAUD.
k. HUWAG NA HUWAG NIYO PONG DADAYAIN ANG IYONG SARILI.

Start here…….

PART 1. Business Combination

Pepper and Salt

Pepper Corporation purchased 70 percent of Salt Company’s ownership on January 1, 2008 and paid P230,000.
At that date, Salt reported the book value of its net assets as P280,000. The purchase difference is allocated to
a depreciable asset with a remaining useful life of 10 years. The companies reported the following data for 2009:
Retained Earnings, 2009 Net Income 2009
January 1, 2009 Dividends
Pepper Corporation P520,000 P120,000 P50,000
Salt Company 230,000 25,000 10,000
Pepper uses the cost method in accounting for its investment in Salt. The following entry was included in the
eliminating entries used to prepare the consolidated financial statements at December 31, 2009:

E(3) Retained earnings, 1/1 - Salt 21,000

Non-controlling interest 21,000

1. Refer to Pepper and Salt. What amount of retained earnings did Sisa report on January 1, 2008?
2. Refer to Pepper and Salt. What amount should be reported as consolidated retained earnings at January 1,
2009?
3. Refer to Pepper and Salt. What amount should be reported as consolidated net income for 2009?
4. Refer to Pepper and Salt. ow much is the consolidated net income attributable to parent for 2009?
5. Refer to Pepper and Salt. How much is the consolidated net income attributable to NCI for 2009?
6. Refer to Pepper and Salt. What amount should be reported as consolidated retained earnings at December 31,
2009?

Papa and San

Papa Corporation owns 75% of the outstanding stock of San Company, acquired at book value during 2007.
Selected information from the accounts of Papa and San for 2009 are as fol lows:
Papa San
Sales P900,000 P500,000
Cost of goods sold 490,000 190,000
During 2009 Papa sold merchandise to San for P50,000 at a gross profit of P20,000. Half of this merchandise
remained in San’s inventory at December 31, 2009. San’s December 31, 2008 inventory included unrealized
profit of P4,000 on goods acquired from Papa.
7. Refer to Papa and San. In the consolidated income statement for Papa Corporation and subsidiary for the year
2009, consolidated sales should be
8. Refer to Papa and San. In the consolidated income statement for Papa Corporation and subsidiary for the year
2009, consolidated cost of goods sold should be:

Pat and Susan

Pat Corporation owns 70% of Susan Company’s outstanding stock, acquired on January 1, 2008. Susan
regularly sells merchandise to Pat at 150% of Susan’s cost. Pat’s December 31, 2008 and 2009 inventories
include goods purchased intercompany of P112,500 and P33,000, respectively. The separate incomes
(excluding investment income) of Pat and Susan for 2009 are s ummarized below:
Pat Susan
Sales P1,200,000 P800,000
Cost of goods sold (600,000) (500,000)
Operating expenses (400,000) (100,000)
Net income from own operations P200,000 P200,000

9. Refer to Pat and Susan. Consolidated net income allocated to the parent should be
10. Refer to Pat and Susan. Consolidated net income allocated to NCI should be
11. On July 1, 2009, Sony Company purchased all of the outstanding stock of Aiwa Company for P4,000,000. At
that time, Aiwa Company’s balance sheet showed net assets of P2,200,000. Aiwa Company’s assets and
liabilities had fair market values different from their book values as follows:
PPE (net) - BV P5,000,000; FV P5,750,000
Other assets - BV P500,000; FV P350,000
Long-term debt - BV P3,000,000; FV P2,800,000
As a result of the combination above, what amount, if any, will be shown as goodwill in the July 1, 2009
consolidated balance sheet of Sony Company and its wholly owned subsidiary, Aiwa Company?

P Company and S Company

On October 1, 2009, P Company acquired 80% of the outstanding common stock of S Company for P480,000.
The working paper elimination entry for P Company and subsidiary on October 1, 2009 was as follows:

Common stock - S Company P100,000

APIC - S Company 120,000
Retained earnings - S Company 180,000
Plant assets 50,000
Goodwill ?
Investment in S Company P480,000
Non-controlling interest ?

Non-controlling interest is recorded at estimated fair value.

12. Refer to P Company and S Company. What amount of goodwill should be reported on the date of acquisition?
13. Refer to P Company and S Company. What amount of non-controlling interest should be reported on the date of
acquisition?

Pepe Company and Sara Company

On July 1, 2009, Pepe Company borrowed P160,000 to purchase 80 percent of the outstanding common stock
of Sara Company. This loan, carrying a 12 percent annual rate, is payable in 10 annual installments beginning
July 1, 2010. Summarized portions of Pepe and Sara’s balance sheet as of June 30 , 2009 are as follows:
Pepe Company Sara Company
Total assets P800,000 P300,000
Total liabilities 250,000 155,000
Total stockholders’ equity 550,000 145,000

The book values of Sara’s assets and liabilities approximated market values except for accounts payable, which
had a fair value that was P5,000 more than the book value. Any remaining difference is attributable to goodwill.
14. Refer to Pepe Company and Sara Company. How much is the consolidated total assets on the date of
acquisition?
15. Refer to Pepe Company and Sara Company. How much is the consolidated total liabilities on the date of
acquisition?
16. On June 1, 2009, Paco Company acquired most of the outstanding common stock of Soda Company for cash.
The incomplete working paper elimination entries on that date for the consolidated balance sheet of Paco
Company and its subsidiary is shown below:

E(1) Stockholders’ equity - Soda Company P290,700

Investment in Soda Company P247,095
NCI 43,605

E(2) Inventories P 6,630

Equipment 48,450
Patent 7,650
Goodwill ?
Investment in Soda Company P69,955
NCI ?
Assuming NCI is measured at fair value, what is the amount of goodwill to be reported in the consolidated
balance sheet on the date of acquisition?

Kim Company and Jenna Company

Kim Company purchases 8,000 shares of Jenna Company for P64 per share. Just prior to the purchase, Jenna
Company has the following balance sheet:

Cash, P20,000; Inventory, P280,000; Equipment, P400,000; Goodwill, P100,000; Current liabilities, P250,000;
Common stock, P5 par, P50,000; APIC, P130,000; Retained earnings, P370,000

Kim Company believes that the inventory has a fair value of P400,000 and that the equipment is worth
P500,000.
17. Refer to Kim Company and Jenna Company. What is the amount of the non-controlling interest in the
consolidated balance sheet on the date of acquisition?
18. Refer to Kim Company and Jenna Company. What is the amount of goodwill (income from acquisition) to be
reported in the consolidated balance sheet on the date of acquisition?
Pig Company and Sir Company
Several years ago, Pig Company acquired 90% of Sir Company at book value. Below are the year 2009 income
statements for the two companies. Pig’s income statement was prepared without regard to its investment in Sir.

Pig Company Sir Company

Sales P1,200,000 P400,000
Cost of sales 600,000 280,000
Gross profit P600,000 P120,000
Operating expenses 400,000 40,000
Net income P200,000 P80,000

Other relevant data:

Intercompany sales during 2009 P200,000
Intercompany merchandise inventories:
January 1, 2009 70,000
December 31, 2009 60,000

Both Pig and Sir have experienced very stable gross profit rates.
19. Refer to Pig Company and Sir Company. Assuming that the intercompany sales are made by Sir to Pig, the
amount of cost of sales to be shown in the consolidated income statement in 2009 is:
20. Refer to Pig Company and Sir Company. Assuming that the intercompany sales are made by Sir to Pig, the
consolidated net income attributable to parent to be shown in the consolidated income statement in 2009 is:

Polo Company and Star Company

Polo Company purchased 60% of Star Company’s voting stock for P252,000 on January 1, 2006. Star reported
total stockholders’ equity of P400,000 at the time of acquisition. The excess is allocated to equipment with an
expected life of 10 years from the date of acquisition. During 2009, Polo purchased inventory for P20,000 and
sold the full amount to Star for P30,000. On December 31, 2009, Star’s ending inventory included P6,000 of
items purchased from Polo. Also in 2009, Star purchased inventory for P50,000 and sold the units to Polo for
P80,000. Polo included P20,000 of its purchase from Star in ending inventory on December 31, 2009. Summary
income statement data for the two companies revealed the following:
Polo: Sales, P400,000; Dividend income, P25,000; Cost of goods sold, P250,000; Other expenses, P70,000; Net
income P105,000
Star: Sales, P200,000; Dividend income, P0; Cost of goods sold, P120,000; Other expenses, P35,000; Net
income, P45,000
21. Refer to Polo Company and Star Company. What is the amount to be reported as sales in the 2009 consolidated
income statement?
22. Refer to Polo Company and Star Company. What is the amount to be reported as cost of goods sold in the 2009
income statement?
23. Refer to Polo Company and Star Company. What amount of consolidated net income will be assigned to parent
company in the 2009 consolidated income statement?

Pete Company and Sison Company

On January 1, 2009, Pete Company sold equipment to Sison Company, its wholly owned subsidiary, for
P400,000. The equipment had cost Pete P500,000; the accumulated depreciation at the time of the sale was
P250,000. Pete used a 10-year life, no salvage value, and straight-line depreciation. Sison will continue this
practice.
24. Refer to Pete Company and Sison Company. On the consolidated balance sheet at December 31, 2009, the cost
of the equipment should be stated at:
25. Refer to Pete Company and Sison Company. On the consolidated balance sheet at December 31, 2009, the
accumulated depreciation of the equipment should be stated at:
26. Paw Company owns 75% of Saw Company purchased several years ago at book value. On July 1, 2009, Saw
sold to Paw a used computer at a loss of P12,000. The computer has a 5-year life from the date of the
intercompany sale, straight-line depreciation will be used, and it has no salvage value. In year 2009, Saw had
net income of P100,000 and paid dividends of P60,000. The NCI in net income of subsidiary for 2009 is:

Palani Company
Palani Company shipped inventory from the home office to its Bacolod branch, charging the branch P37,500
plus freight. Palani bills inventory to its branches at 120 percent of original cost, plus the actual amount of
shipping charges. At the end of the year, the Bacolod branch had resold 50 percent of the inventory from the
home office. Shipping costs paid by Palani were P2,000.
27. Refer to Palani. What amount should the inventory be reported in the branch’s balance sheet?
28. Refer to Palani. At what amount should the branch’s inventory from the home office be reported in the balance
sheet of Palani as a whole?
29. Oakes Company has a branch in Cebu. The branch reported income of P130,000 for 2010. The branch has a
balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not
been recorded by Oakes’ home office. During the year, Oakes shipped inventory to the branch at a price of
P160,000; Oakes’ original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated
parties by year end. What is the balance in Oakes’ Investment in Branch account?
30. A branch’s ending inventory of merchandise shipped by the home office and purchased from outside vendors
amounts to P50,000. The post-closing balance in the Unrealized Gross Profit in Branch Inventory account is
P6,000 due to the home office practice of shipping merchandise at 20% above cost. The merchandise
purchased from outside vendors contained in the ending inventory of the branch amounts to:
31. During 2010, Jairo Company transferred inventory from its home office to its Laguna branch at a billed price of
P110,000. The inventory originally cost the company P90,000. The home office reported sales and cost of goods
sold of P1,400,000 and P590,000, respectively. The Laguna branch reported sales and cost of goods sold of
P675,000 and P300,000, respectively. All of the inventory had been sold by year end. What is the cost of goods
sold to be reported in the 2010 income statement for the company as a whole?
32. Saidi Company always ships merchandise to a branch outlet at a 30 percent mark-up above cost. During 2010,
this branch received P182,000 in such shipments while also acquiring goods from outside vendors at a cost of
P96,000. Half of the branch’s December 31, 2010 inventory of P57,200 came from home office acquisitions. At
the beginning of 2010, the branch held merchandise with a transfer price of P49,400. All of this inventory had
been purchased directly from the home office. At the end of 2010, what is the adjusted balance in Saidi’s
Allowance for Overvaluation in Branch Inventory account?
33. Laird Company starts a branch operation to sell more of its merchandise. Inventory costing P60,000 is shipped
to this branch at a billed price of P90,000. During the initial year, the home office pays P17,000 in expenses for
the branch. The branch sells 80 percent of the inventory that it received for P110,000 and remits P70,000 in
cash to the home office. What is the correct Home Office account balance on the records of the branch? Closing
entries have not been made.
34. Lambert Company starts a branch operation on January 1, 2010. Inventory costing P72,000 is shipped to this
branch at a transfer price of P100,000. Freight is an additional P6,000. The branch sells 70 percent of this
inventory for P110,000 and remits P70,000 in cash to the home office. On Lamber’s financial statements for this
period, what is the appropriate Cost of Goods Sold figure?

Bicol Company
The following balances are taken from the books of the Bicol Company and its Naga City branch location as of
December 31, 2010:
Sales - P270,000 Cr. ; Shipments from Home Office - P151,200 Dr. ; Inventory, January 1 - P28,350 Dr. ;
Expenses - P90,000 Dr.
The Naga City branch purchases all of its merchandise from the home office. Its December 31 inventory was
P25,200. The home office bills the branch at 40% above its cost.
35. Refer to Bicol and Naga. Before closing, what is the balance of the Shipment to Branch account on the Home
Office books?
36. Refer to Bicol and Naga. What is the branch profit as far as the home office is concerned?

Parkin Company
The following information are extracted from the books and records of Parkin Company and its branch. The
balances are at December 31, 2010, the fourth year of the company’s operati ons.
Home Office Branch
Books Books
Sales P200,000
Shipments to branch P60,000
Shipments from home office P80,000
Purchases 30,000
Expenses 60,000
Inventory, January 1, 2010 20,000
Allowance for overvaluation of branch inventory 24,000

There are no shipments in transit between the home office and the branch. Both shipments accounts are
properly recorded. The ending inventory at billed price includes merchandise acquired from the home office in
the amount of P20,000 and P6,000 acquired from vendors for a total of P26,000.
37. Refer to Parkin. How much of the branch beginning inventory was acquired from outsiders?
38. Refer to Parkin. What is the true branch net income according to the generally accepted accounting principles?
Home Office and Branch
The partial closing entries of the Home Office and its Branch at June 30, 2010 are as follows:

Home Office
Sales P300,000
Inventory 6/30 60,000
Shipments to Branch 80,000
Inventory 6/1 P40,000
Purchases 160,000
Expenses 120,000

Branch
Sales P150,000
Inventory 6/30 10,000
Shipments from Home Office P100,000
Inventory 6/1 12,000
Expenses 30,000
39. Refer to Home Office and Branch. What is the combined cost of goods sold in the combined income statement?
40. Refer to Home Office and Branch. What is the combined net income of the home office and branch?
41. Taylor Company owns a branch in Bicol. As of the end of the current year, the home office has an Investment in
Bicol Branch account with a P77,000 debit balance.. At the same time, the branch is reporting a Home Office
account with a P61,000 credit balance. An investigation uncovers the following:

• During the year, the home office shipped merchandise costing P16,000 to the branch
at a billed price of P28,000. The branch accidentally recorded the shipment as
P38,000.
• At year’s end, the home office assigned P14,000 in expenses to the branch, the
branch recorded this allocation as P19,000
• Also at year’s end, the branch transferred P31,000 in cash to the home office. The
office has not yet recorded this money.
What is the reconciled balance of the reciprocal accounts?

The following partial transactions took place between the home office and its two branches, Bacolod Branch and
Cebu Branch.
• Upon the instruction of the home office, Cebu Branch affected a fund transfer of
P25,000 to Bacolod Branch
• Bacolod Branch collected a Cebu Branch’s accounts receivable of P35,000 less 2%
discount
• Cebu Branch paid P250,000 representing the traveling expenses of Mr. Ayala, a senior
vice-president, when the latter attended the regional conference in Canada. Of the
amount paid, 60% was charged to the home office, 25% to Bacolod Branch and the
balance to Cebu Branch
• Home office shipped merchandise costing P200,000 to Cebu Branch. Freight of P3,000
was paid by the home office. It is the policy of the company to bill its branches at 25%
above cost
• Upon the instruction of the home office, Cebu reshipped the above merchandise to
Bacolod Branch. Freight of P1,500 was paid by Bacolod Branch. Had the books been
shipped directly to Bacolod Branch, the freight would have been only P4,200
42. What is the balance of the Investment in Cebu Branch account in the home office books?
43. What is the balance of the Home Office account in the books of Bacolod Branch?
44. On December 31, 2010, the Investment in Branch account on the home office books of the Lady Company
shows a balance of P84,000, and the Home Office account on the books of the branch shows a balance of
P97,350. The following data are determined in accounting for the diff erence.
• Merchandise billed at P6,150 was shipped by the home office to the branch on
December 28. The merchandise is in transit and had not been recognized on the books
of the branch.
• The branch collected a home office accounts receivable of P25,000, but failed to notify
the home office of this collection.
• The home office recorded incorrectly the branch net income at P11,250. The branch
reported net income of P12,150.
• The home office was charged P6,400 when the branch returned merchandise to the
home office on December 31. The merchandise is in transit.
What is the reconciled amounts of the reciprocal accounts on December 31?
45. Caius Company operates a number of branches in Metro Manila. On June 30, 2010, its Baguio Branch showed a
Home Office account balance of P27,350 and the home office books showed Investment in Branch account
balance of P25,550. The following data were discovered in reconciling the two re ciprocal accounts:
• A P12,000 shipment, charged by the home office to Baguio branch, was actually sent
to and retained by Cavite branch.
• A P15,000 shipment, intended and charged to Bicol branch was shipped to Baguio
branch.
• The home office collects a Baguio accounts receivable of P3,600 and fails to notify the
branch.
• The home office was charged for P1,200 for merchandise returned by Baguio branch
on June 28. The merchandise is in transit.
• The home office erroneously recorded Baguio branch’s net income for May at P16,275.
The branch reported a net income of P12,675.
What is the reconciled amount of the Home Office and Investment in Branch accounts?

PART 2. FOREX

Use the following information for the next eight questions:

On December 15, 20x1, ABC Co. sold goods to a Japanese firm for 4,000,000 yens. ABC Co. was concerned
about the fluctuation in the Japanese yen, so on this date, ABC Co. entered into a 30-day forward contract to
sell 4,000,000 yens for ₱1,880,000 to a bank at the forward rate of ₱0.47.

Relevant rates are shown below:

  Dec. 15, 20x1 Dec. 31, 20x1 Jan. 15, 20x2

Spot rate ₱0.48 ₱0.49 ₱0.46

Forward rate ₱0.47 ₱0.485 ₱0.46

1. The entry to record the hedging instrument on December 15, 20x1 includes
a. a debit to accounts receivable for ₱1,880,000
b. a credit to sales for ₱1,880,000
c. both a and b
d. none
2. How much is the FOREX gain (loss) on foreign currency transaction on December 31, 20x1?
3. How much is the gain (loss) on change in fair value of the derivative on December 31, 20x1?
4. The derivative asset (liability) to be included in the December 31, 20x1 statement of financial position is
5. How much is the FOREX gain (loss) on foreign currency transaction on January 15, 20x2?
6. How much is the gain (loss) on change in fair value of the derivative on January 15, 20x2?
7. If the forward contract is settled on a net cash basis, how much is the net cash settlement receipt
(payment)?
8. The total net effect of the two contracts in 20x1 and 20x2 profit or loss is – gain (loss)

Use the following information for the next seven questions:

On December 15, 20x1, ABC Co. purchased goods from a Korean firm for 40,000 wons. ABC Co. was concerned
about the fluctuation in the Korean won, so on this date, ABC Co. entered into a 30-day forward contract to buy
40,000 wons for ₱49,600 from a bank at the forward rate of ₱1.24.

Relevant rates are shown below:

  Dec. 15, 20x1 Dec. 31, 20x1 Jan. 15, 20x2

Spot rate 1.20 1.26 1.30

Forward rate 1.24 1.27 1.30

9. The purchased inventory shall be recognized at

10. The derivative asset (liability) to be included in the December 31, 20x1 statement of financial position is
11. The adjustment to the inventory account on December 31, 20x1 is – increase (decrease)
12. How much is the FOREX gain (loss) on foreign currency transaction on January 15, 20x2?
13. How much is the gain (loss) on change in fair value of the derivative on January 15, 20x2?
14. The total net effect of the two contracts on profit or loss in 20x2 is – gain (loss)
15. Assuming the forward contract is settled on a net cash basis, how much is the net cash settlement receipt
(payment) on January 15, 20x2?

Use the following information for the next eight questions:

ABC Co. produces potato chips. On December 15, 20x1, ABC Co. anticipates purchasing 4,000 kilograms of
potatoes on January 15, 20x2.

ABC Co. is concerned about the fluctuation in the price of potatoes, so on December 15, 20x1, ABC Co. enters
into a 30-day forward contract to purchase 4,000 kilograms of potatoes at a forward rate of ₱45 per kilogram
(or ₱180,000). The forward contract will be settled net on January 15, 20x2.

Relevant prices per kilogram of potatoes are shown below:

  Dec. 15, 20x1 Dec. 31, 20x1 Jan. 15, 20x1

Spot price 40 50 60
Forward price 45 55 60

16. The fair value of the hedging instrument on Dec. 15, 20x1 is
17. The fair value of the hedged item on Dec. 15, 20x1 is
18. The fair value of the hedging instrument on Dec. 31, 20x1 is
19. The fair value of the hedged item on Dec. 31, 20x1 is
20. The net effect of the derivative instrument on the 20x1 profit or loss is – gain (loss)
21. How much is the gain (loss) on the forward contract on January 15, 20x2?
22. The net cash settlement – receipt (payment) – on January 15, 20x2 is
23. Assume that all of the potatoes purchased were used to produce potato chips at a total manufacturing cost
of ₱400,000 and that all of the potato chips were sold on February 14, 20x2 for ₱1,440,000, how much cost
of goods sold is recognized on February 14, 20x2?

Use the following information for the next eleven questions:

On July 1, 20x1, ABC Co., a vegetable dealer, forecasts the purchase of 4,000 kilograms of broccoli in 6
months. Because ABC Co. is worried that the price of broccoli will increase during the coming months, it enters
into 10 long cauliflower futures contracts on July 1, 20x1. Each futures contract is based on the purchase of
400 kilograms of cauliflower at ₱92.98 per kilogram on July 1, 20x1.

Relevant prices per kilogram of commodity are shown below:

  Broccoli Cauliflower

Jan. 1 93.76 92.98

Mar. 31 95.18 94.52

June 30 96.20 95.36

24. What is the percentage of effectiveness of the hedging instrument on March 31, 20x1 and June 30, 20x1,
respectively?
March 31, 20x1 June 30, 20x1
a. 102% 96%
b. 95% 103%
c. 108% 98%
d. 97% 85%

25. How much is derivative asset (liability) on March 31, 20x1?

26. How much is the effective portion of the change in fair value of derivative recognized in other
comprehensive income on March 31, 20x1? – Gain (loss)
27. How much is the ineffective portion of the change in fair value of derivative recognized in profit or loss on
March 31, 20x1? – Gain (loss)
28. As of March 31, 20x1, the effect of the futures contract is referred to as
a. overhedge b. underhedge c. middle hedge d. bottom hedge
29. How much is the debit to inventory on June 30, 20x1?
30. How much is the effective portion of the change in fair value of derivative recognized in other
comprehensive income on June 30, 20x1? – Gain (loss)
31. How much is the ineffective portion of the change in fair value of derivative recognized in profit or loss on
June 30, 20x1? – Gain (loss)
32. How much is the net cash settlement receipt (payment) on the derivative instrument on June 30, 20x1?
33. How much is the total net effect of the hedging instrument on profit or loss? Favorable (unfavorable)
34. If all of the inventory purchased were sold on July 15, 20x1, how much is the cost of goods sold?
35. Goodluck……..

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