In its first month of operation, Maze 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, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.
What is the Phantom Profit

What is a phantom profit? Accounting policies exist for a reason and different policies produce differring results; FIFO in this case means that inventory will have a higher value than if LIFO is used, this may be of benefit when computing the result