QS 5-1 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 1,800 units (products) in her basement, 27 of which were damaged by water and cannot be sold. 100 units in her van, ready to deliver per a customer order, terms FOB destination. 120 units out on consignment to a friend who owns a retail store. How many units should Emma include in her company’s period-end inventory?

1,993 units

Explanation:

Calculation to determine How many units should Emma include in her company's period-end inventory

Units in Ending Inventory:

Units of Product on hand: 1,800 units

Add Units in transit 100

Add Units on consignment 120

Less:Damaged units (27)

Total units in period-end inventory 1,993 units

Therefore How many units should Emma include in her company's period-end inventory is 1,993 units

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