BE6-5 In its first month of operation, Hoffman 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. Identify the impact of LIFO versus FIFO.

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.

Identify the impact of LIFO versus FIFO.

Explanation:

                             units           price            total

purchase               100              $6              $600

purchase               200             $7              $1,400

purchase               140              $8              $1,120

total                       440                                $3,120

ending inventory  180                            

        using LIFO                                         $1,160

        using FIFO                                         $1,400

COGS using LIFO = $3,120 - $1,160 = $1,960

COGS using FIFO = $3,120 - $1,400 = $1,720

If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.

a) the medical information

since 1913, the medical knowledge has vastly changed.   medical terms that are today common-knowledge (dna, chemotherapy, etc.) were not even in existence in 1913.

hope this

a. money supply  

have a good day