1. Silay Company is employing backflush costing in connection with just-in-time production process. The entity provided the following production data for the year:

• The entity acquired direct materials during the year at a cost of P200,000
• The entity reported direct labor cost of P400,000.
• The actual factory overhead incurred during the year amounted to P340,000.
• The standard factory overhead application rate is 75% of direct labor cost.
• The ending finished goods inventory is reported at P240,000.

What is the cost of goods sold under backflush costing?