GCQ Company based on a physical count made reported an inventory balance of P8,000,000. Further inspection of the records revealed the following items:

Cost of goods sent out on consignment to MCQ Company, P400,000. MCQ Company was instructed to sell the goods at a markup of 25% of cost. At December 31, 2019, 40% of the goods remained unsold. Freight cost in relation to the goods sent out to MCQ on consignment totaled to P50,000.

Cost of goods held on consignment from ECQ Company, P75,000. GCQ Company was instructed to sell the goods at a markup of 20% of cost.

Cost of goods sold on an installment basis to GCQ Company, P650,000. Title to the goods is retained by Petsociety Company until full payment is received.

Cost of goods sold on an installment basis by GCQ Company, P480,000. Title to the goods is retained by GCQ Company until full payment is received.

Cost of goods sold to MECQ Company, for which GCQ Company has signed an agreement to repurchase it at a set price that covers all costs related to the inventory, P450,000.

Cost of goods sold where large returns are predictable, P150,000

What will be the inventory balance to be reported at December 31, 2019?