On May 6, 2019, a flash flood caused damages to the merchandise stored in the warehouse of Healthy Living Inc. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established:

2018 Net Sales, P8,000,000 matched against cost of P5,600,000.

Merchandise inventory, January 1, 2019 was P2,000,000, 90% of which was in the warehouse and 10% in downtown showroom.

From January 1, 2019 to date of flood, you ascertained invoice value of purchases (all stored in the warehouse), P1,000,000; freight inward, P40,000; purchase returns P60,000.

Cost of merchandise transferred from the warehouse to showroom was P80,000 and net sales January 1 to May 6, 2019 (all warehouse stock), P3,200,000.

Assuming gross profit rate in 2019 to be the same as in the previous year, what was the estimated cost of merchandise destroyed by the flood?