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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 $enter a phantom profit in dollars

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Answer #1
FIFO Ending inventory COGS
210 7 1470
310 8 2480
250 9 2250 250 9 2250
40 8 320
6200 2570 3630
LIFO
210 7 1470
310 8 2480
250 9 2250 210 7 1470
80 8 640
6200 2110 4090
Phantom profit 460

Phantom profit by using FIFO over LIFO = $ 460

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