Temporex had 1,000 units of an item on hand at the beginning of 2006, which were valued at their acquisition cost of $10 per unit. No additional purchases of this item occurred during 2006. For simplicity, assume that no sales of this item were made in 2006. The replacement cost (assumed to be market) at the end of each quarter follows:
Required:
Determine the charge or credit, if any, to be made to earnings for each quarter of 2006.

Question

Temporex had 1,000 units of an item on hand at the beginning of 2006, which were valued at their acquisition cost of $10 per unit. No additional purchases of this item occurred during 2006. For simplicity, assume that no sales of this item were made in 2006. The replacement cost (assumed to be market) at the end of each quarter follows:
  Required:
Determine the charge or credit, if any, to be made to earnings for each quarter of 2006.

Quizplus · Accepted Answer

The Answer of Temporex had 1,000 units of an item on hand at the beginning of 2006, which were valued at their acquisition cost of $10 per unit. No additional purchases of this item occurred during 2006. For simplicity, assume that no sales of this item were made in 2006. The replacement cost (assumed to be market) at the end of each quarter follows:
  Required:
Determine the charge or credit, if any, to be made to earnings for each quarter of 2006.

Temporex Had 1,000 Units of an Item on Hand at the Beginning