A physical count on December 31, 2021 revealed that Della Company had inventory with a cost of P4,400,000. The following items were excluded from this amount:

Merchandise of P600,000 is held on consignment by Della.

Goods costing P400,000 was shipped by Della Ex-ship to a customer on December 31, 2021. The customer received the goods on January 3, 2022.

Merchandise costing P500,000 was shipped by Della Free alongside to a customer on December 29, 2021. The customer received the goods on January 6, 2022.

Goods costing P800,000 shipped by a vendor FOB destination on December 31, 2021 was received by Della on January 7, 2022.

Goods costing P700,000 was shipped by a supplier CIF on December 30, 2021 and received by Della on January 10, 2022.

1. What is the correct amount of inventory on December 31, 2021?

a. P4,900,000

b. P5,400,000

c. P5,500,000

d. P6,000,000