On December 1, Dale Co. had the following inventories: materials, P240,000; work in process, P120,000; and finished goods P360,000.

During the month, materials purchased total P560,000. Direct labor for December was P400,000 at a uniform wage of P64.00 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales.

Inventories on December 31 were as follows: materials P200,000; work in process P80,000, and finished goods P400,000. Net sales for December totaled P2,000,000. Factory overhead is applied on the basis of P80 per direct labor hour.

REQUIRED: 

Compute for (1) prime costs; and (2) conversion costs.