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Question
In its intial month of operation Moraine Company purchased 100 units of inven-tory for $6, then 200 units for $7 as well as finally 140 units for $8 and At the end of the month 180 units remained. Calculate the amount of phantom profit that would result if the company used FIFO rather than LIFO. Describe why this amount is referred to as phantom profit. The company usages the periodic method Olsson Video Center accrues the following cost and market data at December 31.
Inventory Categories
Cameras Camcorders DVDs
Cost Data
$12,500 9,000 13,000
Market Data
$13,400 9,500 12,200
Calculate the lower-of-cost-or-market valuation for Olsson inventory
Calculate the indirect production cost allocated to each product with the ABC system. Suppose all indirect production cost had been allocated.
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