SAITO Began its operations on January 1, and produces a single product that sells for P15 per unit. SAITO uses an actual cost system. During the year, 100,000 units were produced and 85,000 units were sold. There was no work in process inventory at December 31. Manufacturing and selling, administrative expenses for the year were as follows:

	Fixed Cost	Variable Costs
Raw Materials	P0	P3.00 per unit produced
Direct Labor	P0	P1.875 per unit produced
Factory Overhead	P180,000	P1.125 per unit produced
Selling and Admin	P105,000	P1.50 per unit sold

Requirements: a. Compute the cost of finished goods inventory at December 31 under variable costing and under absorption costing b. Compute the net income under variable costing and under absorption costing