Reference no: EM132694103

Problem 1: Samar Company began operations on January 3, 2017. Standard costs were established in early January assuming a normal production volume of P160,000 units. However, Samar produced only 140,000 units of product and sold 100,000 units at a selling price of P180 per unit during 2007. Variable costs totaled P7,000,000 of which 60% were manufacturing and 40% were selling. Fixed costs totaled P11,200,000 of which 50% were manufacturing and 50% were selling. Samar had no raw materials or WIP inventories at December 31, 2017. Actual input prices per unit of product and actual input quantities per unit of product were equal to standard. The value assigned to Samar's December 31, 2017 inventory using variable (direct) costing is?