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In its first month of operation, Crane Company purchased 210 units of inventory for $7, then...

In its first month of operation, Crane Company purchased 210 units of inventory for $7, then 310 units for $8, and finally 250 units for $9. At the end of the month, 290 units remained.

Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.

phantom profit = $

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Answer #1

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Note: Selling price is not given in the question, so it is not possible to calculate amount of profit earned. We can only state the increase or decrease in profits.

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