Phantom Profit Using FIFO

Question

In its first month of operation, Kuhlman Company purchased 270 units of inventory for $12, then 370 units for $13, and finally 310 units for $14. At the end of the month, 340 units remained.
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.

Answer 1

In order to discuss profit, we need further information about how much the selling price of the inventory was.

 

However with the information given, the value of the remaining inventory using FIFO is $4730. the value of the remaining inventory using LIFO is $4150.