On January 1, 2019, Tango Company changed from the average cost method to the FIFO method to account for the inventory. The entity provided the following ending inventory for each method:

2019 2020

Average cost P 1,000,000 P 500,000

FIFO cost 800,000 1,500,000

The income statement information calculated by average method was as follows:

2019 2020

Sales P10,000,000 P13,000,000

Cost of goods sold 7,000,000 9,000,000

Operating expense 1,500,000 2,000,000

Tax expense - 30% 450,000 600,000

Required:

1. Compute the net income should be reported in 2019 after the change to the FIFO inventory method.
2. Compute the net income should be reported in 2020 after the change to the FIFO inventory method.