Hello, Inc. is engaged in the business of manufacturing basket balls. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016:

Gross sales	9,500,000
Sales returns	500,000
Gross purchases	1,000,000
Purchase returns, allowance, and discounts	200,000
Freight in	400,000
Total costs of factory labor	1,000,000
Depreciation of factory assets	300,000
Expired insurance on factory assets	100,000
Utilities expense on factory	500,000
Total administrative expenses	2,000,000
Total marketing expenses	3,000,000

Inventories are as follows:

	January 1	December 31
Raw materials	100,000	300,000
Work in process	?	200,000
Finished goods	500,000	600,000

The following additional data are provided:

• The net profit ratio of the company before income tax for the year ended December 31, 2016 was 10% of net sales.
• The direct labor cost for the year was four times the cost of indirect labor.
• The cost of indirect materials used was 100,000

Compute for the following:

1. Total prime cost (3 points)

P1,700,000

2. Total conversion cost
3. Work in process as of January 1, 2016
4. Cost of goods sold
5. Cost of goods manufactured