Q$2.$

Dark Force Coffee is a sole proprietorship owned by Han Vader. The company is in its second year of operations and only has one coffee blend available in one size. Han does not have any background in accounting and would like your expertise to determine the individual and total impact of the following items on the ending inventory balance for the company's December $31,2024,$ year end.

Han keeps all inventory in his basement, which he claims has a total cost of $$40,000(500$ units$).$ Of this amount, $50$ units costing $$3,000$ spilled and could not be salvaged or sold.

Han has $80$ units with a cost of $$5,500$ loaded in a delivery van ready to be shipped to customers. The terms of these sales are FOB destination.

Han has decided to try and sell goods on consignment for the first time. At year end, Han has shipped out $100$ units on consignment for a total cost of $$7,750.$ These goods have not yet been sold by the consignee at year end and Han has not received any proceeds.