QS 5-1 (Algo) Inventory ownership LO C1
Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma
looks over her inventory and finds that she has
• 1,400 units (products) in her basement, 28 of which were damaged by water and cannot be sold.
• 140 units in her van, ready to deliver per a customer order, terms FOB destination.
• 100 units out on consignment to a friend who owns a retail store.
How many total units should Emma include in her company's period-end inventory?
Units in Ending Inventory:
Units stored in basement
Add:
1,400 units
Less:
Total units in period-end inventory
1,400 units