Ephraim Electronics has the following information in respect of the accounting year ended 31 March 20X4.
                                                                                                                         £
Administration expenses.......................................................................3,500
Opening inventory, 4,500 units.............................................................9,000
Selling and distribution expenses.........................................................5,000
Purchases...............................................................................................19,800
Tax due on profits of the year...............................................................2,000
Sales.......................................................................................................46,900
Additionally, inventory transactions during the year have been;
                                                                                                       Total cost or selling
                                                                                                                 price (£)
May 20X3 purchased 4,000 units.........................................................8,000
September 20X3 purchased 1,000 units.............................................2,300
November 20X3 sold 3,000 units.......................................................28,500
January 20X4 purchased 1,000 units...................................................2,400
March 20X4 sold 2,000 units..............................................................18,400

(a) From the above information, prepare an income statement using a FIFO inventory valuation.

(b) Repeat the exercise using an AVCO inventory valuation