Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finns house. At the end of the current period, Emma looks over her inventory and finds that she has 1,700 units (products) in her basement, 23 of which were damaged by water and cannot be sold. 180 units in her van, ready to deliver per a customer order, terms FOB destination. 140 units out on consignment to a friend who owns a retail store.