On December 31, 2020, an entity reported inventory at P3,000,000 cost and P2,900,000 net realizable value. On

December 31, 2021, the inventory was P4,000,000 at cost and P3,700,000 at net realizable value. The entity

made net purchases of P9,000,000 during 2021.

What amount should be reported as cost of goods sold for 2021?

a. 8,000,000

b. 8,200,000

c. 8,450,000

d. 8,300,000