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Moraine Company

Price: $1.99


In its first month of operation, Moraine Company purchased 100 units of inventory
for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month,
180 units remained. Compute the amount of phantom profit that would result if the company
used FIFO rather than LIFO. Explain why this amount is referred to as phantom
profit. The company uses the periodic method.

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