May I ask for an explanation and solution to this question as well. Thank you!

Hutch Company used the average cost retail inventory method to account for inventory. The following information related to operations for the current year: Beginning inventory and purchases were P6,000,000 at Cost and P9,200,000 at Retail. Net mark ups were P400,000; Net markdowns is P600,000. Sales amount to P7,800,000. What amount should be reported as cost of goods sold for the current year?