Potato Company manufactures a professional-grade vacuum cleaner and began its operation in 2021. For 2022, the company had no price, spending, or efficiency variances and writes off production-volume variance to the cost of goods sold. Actual data for 2022 are given as follows: Units produced - 20,000; Units sold - 17,000; Unit Selling Price - P300; Materials - P30; Manufacturing labor - P25; Variable Manufacturing Overhead - P50; Variable Marketing and Admin Expense - P45; Fixed Manufacturing Cost - P900,000; Fixed Selling and Administration Expense - P750,000.

Requirements: a. Compute the inventoriable unit cost for internal and external reporting purposes b. Compute the operating income for 2022 under variable and absorption costing. c. Provide a reconciliation in income under the two costing methods.