You were assigned to audit the inventories of Titanuim Corp. in relation to your audit firm's audit of

the company's financial statements as of and for the period ended December 31, 2020. Since internal

control over inventories were good, you audit manager simply asked you to render analytical

procedure to test the reasonableness of the inventory balance. The following information were made

available by Titanuim Corp.'s accountant:

Cost Retail

Beginning inventory 1,020,000 1,920,000

Purchases 13,072,500 22,155,000

Freight in 300,000

Purchase return 450,000 750,000

Purchase allowance 270,000

Departmental transfer debit 300,000 425,000

Departmental transfer credit 600,000 1,200,000

Net markup 450,000

Net markdown 1,425,000

Sales 19,800,000

Sales returns and allowance 450,000

Sales discounts 500,000

Employee discount 300,000

Normal Spoilage and breakages 600,000

Abnormal Spoilages and breakages 120,000 200,000

The company reported inventories at P400,000 as a result of its physical count on December 31,

2020, what is the amount of estimated ending inventory shortage/overage as a result of your audit

procedures? (round off cost% to nearest whole number, eg: xx%)

Required:

1. Lower of cost or average/Conservative/Conventional Approach:

2. Average Approach:

3. FIFO Retail Approach