TOA-02

THEORY OF ACCOUNTS
INVENTORIES

PAS 2 paragraph 6: Inventories are assets which are:

 held for sale in the ordinary course of business  pertains to merchandise purchased by a retailer intended for
resale
 in the process of production for such sale  refers to work-in-process goods in a manufacturing business
 in the form of materials or supplies to be consumed in the production process or in the rendering of services 
involves all raw materials which will be transformed into finished goods.

FS Classification: CURRENT ASSETS (held for trading within the normal operating cycle of the business)

Two Classes of Inventories:

1. Inventories of a TRADING ENTITY – merchandise inventory
2. Inventories of a MANUFACTURING ENTITY:
a. Finished goods
b. Goods in process
c. Raw materials
d. Factory or manufacturing supplies

Ownership of Inventories  As long as a company has the title to the goods, regardless of the location, the ownership
remains with the company.

Inventories in transit  If goods are in transit, the following freight terms are considered in determining the ownership
of the inventories. These terms also determine who should shoulder the freight charges, meaning, whoever owns the
goods during the shipment should also pay for the freight:
1. FOB destination – ownership transferred to buyer upon receipt of inventory at the point of destination. The
seller is responsible for the delivery charges. Such cost is considered as freight out under selling expenses
(operating expenses).
2. FOB shipping point – ownership transferred to buyer upon shipment of inventory. The buyer is responsible for
the delivery charges. Such cost is considered as freight in and forms part of the initial cost of the inventory
(product cost).

Freight payment terms (who actually paid the freight  not considered in determining who actually owns the goods
or who is responsible for paying the freight and other costs from the point of shipment to the point of destination):
1. Freight collect – buyer pays freight
2. Freight prepaid – seller pays freight

Other Maritime Shipping Terms:

1. FAS or free alongside – seller must bear all expenses and risk involved in delivering the goods up to the dock
next to or alongside the vessel on which the goods are to be shipped; buyer bears the cost of loading and
shipment; title passes to the buyer when the carrier takes possession of the goods; essentially the same as FOB
Shipping Point
2. CIF or cost, insurance and freight – buyer agrees to pay in a lump sum the cost of the goods, insurance cost and
freight charge; seller pays for the cost of loading; title passes to buyer upon delivery of goods to carrier;
essentially the same as FOB Shipping Point
3. Ex-ship – seller bears all expenses and risk of loss until goods are unloaded at which time title and risk of loss
passes to the buyer; essentially the same as FOB Destination
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Inventories under Consignment

Consignment – an agreement between two parties wherein the consignor is contracting a consignee to sell the goods on
its behalf.
 Goods held on consignment account – ordinarily associated with the consignee. The amount related to this
account will NOT form part of its inventories.
 Goods out on consignment account – ordinarily associated with the consignor. The amount related to this
account will form part of its inventories

Consigned goods – included in the consignor’s inventory and excluded from the consignee’s inventory.

Goods held by customer for approval or trial

 If items are provided to a customer for approval or trial, ownership remains with the seller, even if the customer
has the physical possession of them. Because the buyer can still reject or return the items to the vendor, the risk
remains with the seller and therefore, the seller retains ownership.

Bill-and-hold sales
 A bill and hold arrangement is a contract under which a seller bills a customer but retains physical possession of
the goods until it is transferred to the customer at a future date.
 The goods are EXCLUDED from the SELLER’S inventory and INCLUDED in the BUYER’S inventory upon billing,
provided:
o The reason for the bill and hold arrangement is substantive (the customer has requested for the
arrangement)
o The goods are identified separately as belonging to the customer
o The goods are available for immediate transfer to the customer
o The seller cannot use the goods or sell them to another customer

Segregated goods
 Special order goods manufactured according to customer specifications should be considered SOLD when
COMPLETED, even if it is still in the possession of the seller. Therefore, these are EXCLUDED from the SELLER’S
inventory.
 Goods that are CUSTOMARILY manufactured and constitute stock items of the entity, even if physically
segregated, are still INCLUDED in the SELLER’S inventory until delivered to the customer.

Goods sold under installment sales – INCLUDED in the BUYER’S inventory despite retention of the title by the seller until
fully paid. The substance is that control over the goods has already passed to the buyer at the time of sale.

Goods sold with buyback arrangements

 Buyback arrangement – a form of product financing arrangement wherein the owner of the goods sells the
inventory to another party and agrees to repurchase the goods at a specified price. In effect, the inventory is
used as COLLATERAL for a LOAN obtained from the buyer.
 Goods sold under this case are INCLUDED in the inventory of the TRANSFEROR (seller).

Goods sold with refund offers – buyers are given the right to rescind the purchase of goods for a reason specified in the
sales contract. These goods shall be EXCLUDED from the inventory of the seller.

In summary, the following must be INCLUDED in the inventory:

 Goods in transit and SOLD FOB destination
 Goods in transit and PURCHASED FOB shipping point
 Goods OUT on consignment
 Goods PURCHASED under BILL-AND-HOLD arrangement
 Segregated NORMAL order goods
 Goods PURCHASED under INSTALLMENT basis
 Goods SOLD with BUYBACK arrangements
 Goods PURCHASED with REFUND offers
 Goods OWNED and ON HAND (excluding goods held on consignment)
 Goods in the hands of SALESMEN and AGENTS
 Goods held by CUSTOMERS on APPROVAL or TRIAL

Two Systems of Accounting for Inventories:

1. Periodic or physical system – does not maintain records of inventory during the year and heavily relies on the
physical count of inventory on hand at the end of an accounting period; cost of goods sold is computed only at
the end of the period by deducting the physical inventory from the total cost of goods available for sale;
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generally used when the individual inventory items have small peso investment (low prices but maintained in
large quantities, i.e. groceries, hardware and auto parts). This system uses purchase-related accounts such as
 Purchases
 Freight-in
 Purchase returns and allowances
 Purchase discounts
2. Perpetual system – maintains a detailed record of inventories; all inventory purchases and sales transactions are
being monitored throughout the period by using inventory stock cards; cost of goods sold is computed at the
time of every sale; commonly used when the inventory items treated individually have large peso investment
(e.g. cars, jewelries). This system does not use purchase-related accounts. All merchandise purchase
transactions are recognized in the merchandise inventory account.

Inventory Cost Flow Methods:

1. Specific identification – used for items that are not ordinarily interchangeable and goods and services produced
and segregated for specific projects. This is commonly applicable to high value inventories which have different
identifications.
2. FIFO (periodic and perpetual) – assumes that items that were purchased or produced first are sold first. As a
result, the items remaining in inventory at the end of the period are those most recently purchased or produced.
This method assumes that all product offered by the entity are of the same identification, nature or quality.
Whether periodic or perpetual, the result in the computations will be the same such as cost of sales, ending
inventory and gross profit. The only difference is the manner of presentation and solution.
3. Average method – applied when goods cannot be distinguished. The cost of each item is determined from the
weighted average of the cost of similar items at the beginning of the period and the cost of similar items
purchased or produced during the period. The average may be calculated on a periodic basis, or as each
additional shipment is received, depending upon the circumstance of the entity.
a. Weighted average (Periodic) – a Weighted Average Unit Cost is computed by dividing the Cost of Goods
Available for Sale over the Number of Units Available for Sale
b. Moving average (Perpetual) – a new moving average unit cost is computed every time there is a new
purchase or a purchase return transaction. This moving average unit cost is not affected by any sales or
sales return transaction.

Initial Measurement of Inventories: COST

Cost of Inventory:
1. Cost of purchase – purchase price, import duties and irrevocable taxes, freight, handling and other direct costs;
does not include foreign exchange differences
2. Cost of conversion – DM, DL, FOH
3. Other cost incurred in bringing the inventory to its present location and condition

Costs excluded from the cost of inventory (expensed in the period in which they are incurred):
 abnormal wastage (materials, labor and other production costs)
 selling costs (e.g. advertising, promotion costs, delivery expenses, freight-out)
 storage costs (except for necessary costs in the production process before a further production stage 
applicable to goods in process, in which case, it is an inventoriable cost)
 administrative overheads (those that do not contribute to bringing inventories to their present location and
condition)

Relative Sales Price method of inventory measurement is used when different commodities are purchased at a
lumpsum and the single cost is apportioned among the commodities based on their respective sales price.

Cash Discounts (Purchase Discount and Sales Discount) – reductions in the invoice price allowed only when payment is
made within the discount period. These are given to encourage early payments. A.K.A. early payments discount.

Trade Discounts – reductions in the list price or catalog price in order to get the invoice price. These are given to
encourage bulk buying or buying large quantities. A.K.A. quantity discounts.

Two Methods of Accounting for Cash Discounts:

1. Gross method
 Purchases and accounts payable are recorded at gross invoice amount.
 Cash discounts are recognized only when actually taken.
 Most common and widely used (simple to apply).
2. Net method
 Purchases and accounts payable are recorded at an amount net of cash discount.
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 Cash discounts not taken by the company are debited to the purchase discounts lost account, which is
included under finance cost (or interest expense) in the SoCI. Purchase discounts lost will not be
included as a component of the cost of purchases under this method.
 Theoretically, the net method should be used because it supports the concept of conservatism.
However, the gross method is more generally adopted because of cost-benefit considerations and
simplicity.

INVENTORY VALUATION:
Subsequent Measurement: PAS 2 paragraph 9: Lower of Cost and Net Realizable Value (LCNRV)  applied PER ITEM of
inventory and NOT per TOTAL.
PAS 2 paragraph 25: cost of inventories shall be determined using: FIFO method or Weighted Average method
PAS 2 paragraph23: if inventories are not ordinarily interchangeable, Specific Identification method can be used

Net realizable value = selling price in ordinary course of business less estimated cost of completion and estimated selling
costs

Methods of Accounting for Inventory Writedown to NRV:

1. Direct method – inventory is recorded at the LCNRV; any loss on inventory writedown is “buried” in the cost of
goods sold
2. Indirect/Allowance method – inventory is recorded at COST; any loss on inventory writedown is accounted for
separately through the use of an allowance account; loss on inventory writedown is included in the computation
of cost of goods sold
 If required allowance increases – additional loss is recognized
 If required allowance decreases – gain on reversal of inventory writedown is recorded only to the extent
of the allowance balance; gain is included in the cost of goods sold as a deduction
*The standard is silent as to which option should an entity follow. Whatever option will be applied, the amount of Cost
of Goods Sold should be the SAME.

Net realizable value of raw materials

 Raw materials are NOT written down below cost if the finished products in which they will be incorporate are
expected to be sold at or above cost. However, when a decline in the price of materials indicates that the cost of
the finished products exceeds NRV, the materials are written down to NRV.
 The replacement cost of the materials may be the best available measure of their NRV.

Purchase Commitments – are an entity’s commitments to acquire certain goods sometime in the future at a fixed price
and fixed quantity. In this scenario, a purchase contract for future delivery of products with a specified price and
quantity has already been made.
 A purchase commitment can either be: cancellable (no entry is required in the books) or non-cancellable.
 When purchase commitments are significant and unusual, disclosure in the notes is necessary.
 Any estimated losses resulting from firm and noncancellable commitments must be recognized.
 If there is a decline in purchase price after a noncancelable purchase commitment has been made, a
loss is recorded in the period of the price decline. This is an application of the LCNRV measurement.
 If the market price rises by the time the entity makes the purchase, a gain on purchase commitment
would be recorded; gain to be recognized is limited to the loss on purchase commitment previously
recorded. The gain on purchase commitment is classified as other income.
 The loss on purchase commitment is classified as other expense and estimated liability for purchase
commitment is classified as current liability.

Some disclosure requirements for inventories:

 Accounting policy adopted in measuring inventories
 Total carrying amount of inventories and the carrying amount in classifications appropriate to the entity
 Carrying amount of inventories carried at fair value less cost to sell
 Amount of inventories recognized as an expense during the period
 Amount of any writedown of inventories
 Amount of reversal of writedown recognized as income
 Circumstances or events leading to the reversal of a writedown of inventories
 Carrying amount of inventories pledged as security for liabilities

INVENTORY ESTIMATION

Reasons for making an estimate of inventory:

1. Determination of inventory loss due to fire and other catastrophe or theft of merchandise
2. Proof of reasonable accuracy of a physical count (gross profit test)
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3. Preparation of interim statements or statements of less than 1 year.

Two methods of Inventory Estimation:

1. Gross Profit Method – ending inventory is computed as “goods available for sale minus cost of sales”. The cost
of sales is determined through the use of the gross profit rate. The major assumption of this method is that the
GP rate remains approximately the same from period to period.
a. GP Rate based on Sales – the amount of net sales is the base amount, therefore, assumed to be 100%
b. GP Rate based on Cost – the amount of cost of goods sold is the base amount, therefore, assumed to be
100%
Notes in the computations to be done:
 For the purposes of inventory estimation, sales allowances and discounts are NOT taken into account
when calculating the net sales, because these items reduce sales yet have no effect on the physical flow
of goods. Only sales returns are deducted from gross sales.
 Purchase returns, allowances and discounts are ALL taken into consideration when computing net
purchases.
2. Retail Inventory Method – a type of inventory estimation that applies information for retail, which is the selling
price, to determine its relationship with costs, specifically the cost ratio and also the estimated ending
inventory. This method is also applicable for businesses that have numerous products to offer and variety of
goods and monitoring their costs one by one would be burdensome. In this method, the ending inventory is
computed by:
 Goods available for sale at selling price minus net sales equals ending inventory at selling price which is
multiplied by the cost ratio to get the inventory at cost.
 The cost ratio under the retail method is computed by dividing the goods available for sale at cost by the
goods available for sale at selling price.
 Same with the Gross Profit Methods, sales allowances and discounts are NOT taken into account when
calculating the net sales.

Four Approaches of the Retail Inventory Method:

Computation of Cost Ratio

Approach Beginning Inventory Markups Markdowns
Conservative INCLUDED INCLUDED EXCLUDED
Average Cost INCLUDED INCLUDED INCLUDED
FIFO EXCLUDED INCLUDED INCLUDED
LIFO EXCLUDED INCLUDED INCLUDED

𝐺𝑜𝑜𝑑𝑠 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑆𝑎𝑙𝑒 @ 𝐶𝑜𝑠𝑡

𝐶𝑜𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐺𝑜𝑜𝑑𝑠 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑆𝑎𝑙𝑒 @ 𝑅𝑒𝑡𝑎𝑖𝑙

Terms under the Retail Inventory Method:

1. Original retail - sales price at which the goods are first offered for sale
2. Initial markup – original markup on the cost of goods or the amount added to the original cost to get the original
retail price
3. Additional markup – an increase in the sales price above the original sales price or the amount added to the
original retail price
4. Markup cancelation – a decrease in the sales price that does not reduce the sales price below the original sales
price
5. Net markup – additional markup minus markup cancelation
6. Markdown – a decrease in the sales price below the original price
7. Markdown cancelation – an increase in sales price that does not raise the sales price above the original sales
price
8. Net markdown – markdown minus markdown cancelation
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PFRS for SMEs PFRS for Small Entities

Inventories  Subsequent measurement: At LOWER OF COST AND  Initial measurement: at COST
ESTIMATED SELLING PRICE LESS COST TO COMPLETE  Subsequent measurement: LCNRV 
AND DISPOSE if market value is lower than cost,
 Impairment Loss  if carrying amount is greater than the difference is accounted for as an
the selling price less costs to complete and dispose impairment loss

MULTIPLE CHOICE:

1. Which of the following are accounted for under PAS 2?

I. The cows of a cattle farmer
II. The gold mineral reserves of a mining company
III. Work-in-progress of a long-term construction contract
IV. Maturing wine in the cellars of a wine produces
V. Clothing in the warehouse of a retailer
VI. Lumber of a wood distributor
a. III, IV, V, and VI c. II, III, IV, V and VI
b. IV, V, and VI d. I, II, III, IV, and VI

2. In which of the following circumstances would an inventory writedown be recognized or reversed?

I. When inventory is damaged or has become obsolete and can no longer be used
II. When prices of specific raw materials have declined but the prices of the related
finished product remain above its costs to complete.
III. When the selling price less the selling costs of a finished product (NRV) is less
than its carrying value
IV. When at year-end a company anticipates that market prices will recover for
inventory that is currently carried at net realizable value
a. I and III c. I, III, and IV
b. I, II and III d. I, II, III and IV

3. Angel-Loves-Me Co. is a clothing retailer. Which of the following costs would it record as a cost of purchase?
I. Cost to ship the jeans from a supplier to the warehouse
II. Cost to ship the jeans from the warehouse to a retail store
III. Reimbursable import duties
IV. Storage costs to the jeans while in transit to the warehouse
V. Salary of the purchasing manager in the accounts department
a. I, II, and IV c. I, II, III and IV
b. I, II, and III d. I, II, III, IV and V

4. How should cash discounts that are received from the purchase of inventory be recognized?
a. Financial revenue
b. Reduction of the cost of inventory
c. It has no impact of the measurement of inventory
d. None of the above

5. The USA segment of International, Inc. measures raw material inventory using the FIFO method. Its European
segment measures the same raw material inventory using the weighted average cost method. Is this permitted under
PAS 2?
a. No. Cost formulas should be consistently applied to al inventories similar in
nature
b. Yes. Different cost formulas can be applied to all inventories similar in nature as
long as the methods used are either FIFO or the weighted average
c. No. PAS 2 requires all inventories to be measured using the specific identification
cost formula
d. None of the above

6. Why is WIP arising out of construction contracts outside the scope of PAS 2?
a. WIP arising out of construction contracts is not inventory
b. There is a specific standard dealing with WIP arising out of construction contracts
(PAS11)
c. Contract costs may fall into different accounting periods
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d. None of the above

7. Which of the following statements are correct?

I. Upon the sale of inventory, an entity must recognize an expense for the carrying
amount of the inventory.
II. Inventories can be allocated to other asset accounts
III. The amount of any writedown of inventory should be deferred and amortized
IV. LIFO can be used as a cost formula to measure inventory in PAS 2
V. Allocation of fixed overhead to inventory is based on the normal capacity of the
production facilities
VI. Unallocated overheads are deferred so they can be allocated in future periods
a. I, II, and V c. II, V, and VI
b. I, III and IV d. I, III and V

8. Which of the following are most likely to be classified as components of inventory of an accounting firm prior to
revenue being recognized under PAS 18?
I. Salaries of the client service accountants
II. Costs of brochures sent directly to clients
III. Travel costs to client locations
IV. An allocation of salary costs of technology support staff assisting client service
accountants
V. An allocation of salary costs of the firm’s accounts payable clerk
VI. Costs of materials used to prepare client’s reports
a. I, III, IV, and VI c. I, II, IV, V, and VI
b. I, II, III, and IV d. I, II, III, IV, and Vi

9. Inventories do not include

a. Finished goods produced
b. Merchandise purchased by a retailer and held for resale
c. Land and other property held for resale by a real estate developer
d. Abnormal amounts of wasted materials, labor and other production costs

10. The cost of inventories should include the following except

a. Cost purchase
b. Cost of conversion
c. Other costs incurred in bringing the inventories to their present location and
condition
d. Selling costs

11. Which of the following is not included in the cost of purchase of inventory?
a. Purchase price
b. Import duties and other taxes
c. Freight, handling and other costs directly attributable to the acquisition of goods
d. Trade discounts, rebates and other similar items

12. Which of the following is not included in the cost of conversion of inventory?
a. Direct labor c. Variable factory overhead
b. Fixed factory overhead d. Administrative overhead

13. Freight and other handling charges incurred in the transfer of goods from the consignor to consignee are
a. Inventoriable by the consignor
b. Inventoriable by the consignee
c. Expense on the part of the consignor
d. Expense on the part of the consignee

14. The use of a discount lost account implies that the cost of a purchased inventory item is its
a. Invoice price
b. List price
c. Invoice price less the purchase discount taken
d. Invoice price less the purchase discount available whether or not taken

15. How should the following costs affect a retailer’s inventory?

Freight In Interest on Inventory Loan
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a. Increase No effect
b. Increase Increase
c. No effect Increase
d. No effect No effect

16. When a portion of inventories has been pledged as security on a loan

a. The cost of the pledged inventories should be transferred from current assets to
noncurrent assets.
b. The value of the portion pledged should be subtracted from the debt
c. The fact should be disclosed but the amount of current assets should not be
affected
d. An equal amount of retained earnings should be appropriated

17. Goods on consignment should be included in the inventory of

a. The consignor but not the consignee
b. Both the consignor and the consignee
c. The consignee but not the consignor
d. Neither the consignor nor the consignee

18. Metrogate Company paid the in-transit insurance premium for consignment goods shipped to Awo Company, the
consignee. In addition, Metrogate advanced part of the commission that will be due when Awo sells the goods. Should
Metrogate inclue in-transit insurance premium and advance commission in inventory costs?
Insurance Premium Advanced Commission
a. Yes Yes
b. No No
c. Yes No
d. No Yes

19. The credit balance that arises when a net loss on a purchase commitment is recognized should be
a. Presented as a current liability
b. Subtracted from ending inventory
c. Presented in the income statement
d. Presented in the statement of changes in equity

20. What is the method of accounting for inventories in which the cost of goods sold is recorded each time a sale is
made?
a. No inventory system c. Perpetual inventory system
b. Periodic inventory system d. Planned inventory system

21. FOB destination means

a. The ownership of the goods is transferred upon shipment of the goods and the
buyer is the owner of the goods in transit
b. The seller must bear all expense and risk involved in delivering the goods to the
dock next to the vessel on which they are to be shipped. The buyer bears the cost
of loading and of shipment, thus title passes when the carrier takes possession of
the goods
c. The ownership of goods in transferred upon receipt of the goods by the buyer at
the point of the destination and the seller is the owner of the goods in transit
d. The freight charge is paid by the seller but chargeable to the buyer

22. Which of the following describes the agreement that the buyer will pay for the freight charge but is not legally
responsible for the same?
a. FOB destination, freight prepaid
b. FOB destination, freight collect
c. FOB shipping point, freight prepaid
d. FOB shipping point, freight collect

23. This cost formula must be employed for inventories that are not ordinarily interchangeable, and those goods and
services produced and segregated for specific projects.
a. Specific identification c. Net realizable value
b. Standard cost d. FIFO

24. Which inventory pricing method would reflect the most recently incurred purchase costs in the ending inventory?
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a. FIFO c. Weighted-average
b. LIFO d. Retail

25. The unique characteristic of this costing method is that cost of goods sold is the same under a periodic system as
under a perpetual system
a. FIFO c. LIFO
b. Specific identification d. Weighted-average

26. In a period of declining price, which of the following methods would result to the most conservative net income?
a. FIFO c. Weighted-average
b. LIFO d. Specific identification

27. Total cost of goods available for sale during the period divided by the total units available for sale during the period
equals an average unit cost. Ending inventory and cost of goods sold are then priced at this average cost
a. Weighted-average (periodic) c. Specific identification
b. Weighted-average (perpetual) d. LIFO

28. The average inventory pricing method under a perpetual inventory system is called
a. Weighted-average method c. Simple average method
b. Moving average method d. Composite average method

29. Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in
most manufacturing situations?
a. Weighted-average c. LIFO
b. FIFO d. Moving average

30. What is meant by “net realizable value”?

a. Current replacement cost
b. Estimated selling price
c. Estimated selling price less estimated cost to complete
d. Estimated selling price less estimated cost to complete and estimated cost to sell

31. A major advantage of the retail inventory method is that it

a. Hides costs from customers and employees
b. Gives a more accurate statement of inventory cost that other methods
c. Permits companies which use it to avoid taking an annual physical count
d. Provides a method for inventory control and facilities determination of the
periodic inventory

32. When the conventional retail inventory method is used, markdowns are commonly ignored in the computation of
the cost-to-retall ratio because
a. There may be no markdowns in a given year
b. This tends to give a better approximation of the lower of cost or market
c. Markups are also ignored
d. This tends to result in the showing of a normal profit margin in a period when no
markdown goods have been sold

33. If the conventional retail inventory method is used, which of the following calculation would include or exclude net
markdowns?
Cost-to-retail ratio Ending inventory at retail
a. Include Include
b. Include Exclude
c. Exclude Include
d. Exclude Exclude

34. The gross profit method of estimating ending inventory may be used for all of the following, except
a. Rough test of the validity of an inventory cost determined under either periodic
perpetual system
b. Internal as well as external year-end reports
c. Internal as well as external interim reports
d. Estimates of inventory destroyed by the fire of other casualty
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THEORY OF ACCOUNTS
INVENTORIES

ANSWER KEY

1.B 11.D 21.C 31.D

2.A 12.D 22.B 32.B

3.A 13.A 23.A 33.C

4.B 14.D 24.A 34.B

5.A 15.A 25.A

6.B 16.C 26.A

7.A 17.A 27.A

8.A 18.C 28.B

9.D 19.A 29.B

10.D 20.C 30.D