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.