Cyclops Company uses the average retail inventory method to estimate ending inventory for its monthly financial statements. In the past, Cyclops Company has had a stable cost-to-retail relationship for its inventory due to buying only from one supplier and marking up the goods by a fixed percentage. Because of lack of competition, Cyclops Company has not previously needed to mark down any of its goods. During 2012, however, two department store chains have opened which provided intense competition and Cyclops Company has found itself buying products from a variety of manufacturers with lower costs, reducing markup on many of its goods and marking down various items of inventory. The following data pertain to a single department of Cyclops Company for March 2012: Inventory, March 1: at cost - P200,000, at retail - P300,000; purchases: at cost - P1,001,510, at retail - P1,464,950; freight-in - P45,400; purchase returns: at cost - P21,000, at retail - P28,000; additional markups - P25,000; markup cancellations - P2,650; net markdowns - P8,000; normal spoilage and breakage - P36,000; sales - P1,347,300. The cost of the March 31 inventory is