LAMITAN Company began operations on January 2, 19x3. Standard costs were established in early January assuming a normal production volume of 160,000 units. However, LAMITAN COMPANY produced only 140,000 units of product and sold 100,000 units at a selling price of P180 per unit during 19x3. variable costs totaled P7M of which 60% were manufacturing and 40% were selling. Fixed costs totaled P11,200,000 of which 50% were manufacturing and 50% were selling. Samar had no raw materials or work-in-process inventories at December 21, 19x3. Actual input prices per unit of product and actual input quantities per unit of product were equal to standard. LAMITAN COMPANYs cost of goods sold at standard costs for 19x3 using full absorption costing is

1. P 6.5 M
2. P 7 M
3. P 7.2 M
4. P 8.2 M