S 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 reports 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?

Units in Ending inventory:

Units of Product on hand: 1,800 units

Add:

Less:

Total units in period-end inventory 1,800 units