In its first month of operation, Marquette Company purchased 100
units of inventory for $6, then 200 units for $7, and finally 150 units
for $8. At the end of the month, 200 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.