C. Jay Sports Equipment Company, Inc., incurred the following costs during 2011. Direct materials used P 452,400 842,400 Direct labor Manufacturing overhead applied 468,000 During 2011, products costing 312,000 were finished, and products costing P343,200 were sold on account for P507,000. There were no purchases of raw material during the year. The beginning balances in the firm's inventory accounts are as follows: Raw material Work in process Finished goods P590,200 46,800 78,000 Required: 1. Total inventories that will appear in 2011 balance sheet 2. Gross margin that will appear in 2011 income statement