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Balance sheet of ABC manufacturing company showed the following balances on Jan. 1
Finished goods 1,500,000
Work in process 1,200,000
Raw materials 2,000,000
During the 1st quarter of the year, prime costs amounted to 13,680,000 while conversion costs amounted to 7,920,000. The average direct labor rate was P38.50 and overhead was applied at P30.80 per direct labor hour. Purchase of raw materials were 10,000,000 while costs of goods manufactured was 17,400,000. The company continues its pricing policy to maintain a gross profit rate of 30%. At the end of the quarter, cost of sales amounted to 16,800,000.
Question 1: The change in work in process inventory and finished goods inventory during the 1st quarter of the year amounted to
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