The statement of income for the year ending December 31, 2021 for Water Works Limited was as follows:

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. (7 marks)