Financial Reporting Analysis (
$ |
|
Revenue |
3,450,000 |
Cost of Sales |
1,795,000 |
Gross Profit |
1,655,000 |
Other operating expenses |
500,000 |
PBIT |
1,155,000 |
The company uses the LIFO method of stock valuation, but the company is assessing a change to the weighted average method. Details of inventory for December 2021 is as follows:
Inventory valuation under:
LIFO Weighted Average
$000 $000
January 1, 2021 180,000 175,200
December 31, 2021 294,000 264,500
Calculate the PBIT if the weighted average method of stock valuation is used.