On 1 January, the Stamping Department of Pressed Panels Ltd had no work in process inventory due to the implementation of a just-in-time inventory system. On 31 January, the following journal entry was made to record the cost of goods completed and transferred out of the Stamping Department:

Finished goods inventory………………………………………$176 000

Work in process inventory: Stamping Department………………………………$176 000

The company uses weighted average process costing.

Required:

What would the amount have been in the journal entry above if Pressed Panels had used the FIFO method of process costing? Explain why.



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