APOL Company incurred the following costs to develop and produce a routine, low-risk computer software product as follows:

Development of new product designP169,000

Costs incurred for coding and testing to establish technological feasibility130,000

Other coding costs after establishment of technological feasibility572,000

Cost of producing product masters for training materials195,000

Duplication of computer software and training materials for commercial

production325,000

Cost of packaging the products for distribution117,000

APOL Company determined the life of the software as 5 years. Also, based on its most realizable forecast, the software would bring total revenue of P1,500,000 over its useful life. Revenue for the current year amounted to be P350,000. Future revenues can be determined reliably. The revenue and consumption of the benefits from the computer are not highly correlated.

Determine the capitalized software cost