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    bsteffes's Avatar
    bsteffes Posts: 1, Reputation: 1
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    #1

    Jul 26, 2016, 12:43 AM
    Accounting question
    In its first month of operation, Kuhlman Company purchased 290 units of inventory for $7, then 390 units for $8, and finally 330 units for $9. At the end of the month, 350 units remained.
    Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jul 26, 2016, 12:59 AM
    If you have a problem with this exercise provide your calculations. The assumption that FIFO produces a phantom result is an erroneous assumption
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