Various equipment used by TWENTYFOUR CO. in its operations are either purchased from dealers or self-constructed. The following items for two

different types of equipment were recorded during the calendar year 2016.

Manufacturing equipment (self-constructed)

Materials and purchased parts at gross invoice price (Twentyfour failed to take the 2% cash

discount) P 450,000

Imputed interest on funds used during construction (stock financing) 36,000

Labor costs 185,000

Overhead costs (fixed - P40,000; variable - P60,000) 100,000

Gain on self-construction 74,000

Installation cost 8,600

What is the total cost of the self-constructed equipment?

A. P674,600 C. P734,600

B. P770,600 D. P743,600