(18 marks) Irene Company began operations on Jan 1, 2018 and uses the average cost method (AC) in costing its inventory. Irene is contemplating a change to the FIFO method. Accordingly, the following information has been developed:

	2018	2019
Ending Inventory
Average Cost	$450	$765
FIFO	480	810

Condensed I/S for Irene, prepared under AC inventory method, for 2018 and 2019 appear below:

	2018	2019
Sales	$3,000	$3,600
CGS	1,800	2,160
Gross Profit	$1,200	$1,440
Sell Gen & Admin	750	825
NI	$ 450	$ 615

Required:

Calculate CGS for each year under FIFO (8 marks)

Prepare the condensed I/S for Irene under FIFO for 2018 and 2019 (4 marks)

Explain the difference between the 2018 NIs under AC and FIFO (2 marks), and the difference between the 2019 NIs under AC and FIFO (4 marks),