Hero Company's inventory on December 31, 2020 was P6,000,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following:
a. Included in the physical count were goods billed to a customer FOB shipping point on December 30, 2021. These goods had a cost of P125,000 and were shipped on December 31, 2020.
b. Goods shipped FOB shipping point on December 28, 2020 from a vendor to Hero were received on January 4, 2021. The invoice cost was P300,000.
At what amount should Hero report its inventory on December 31, 2020?