An entity is employing backflush costing in connection with just-in-time production process. The

production data for the year is provided below:

The entity acquired direct materials during the year at a cost of P100,000

The entity reported direct labor cost of P200,000.

The actual factory overhead incurred during the year amounted to P170,000.

The standard factory overhead application rate is 75% of direct labor cost.

The ending finished goods inventory is reported at P120,000.

Question #1

What is the cost of goods sold to be reported by the entity under backflush costing?