xocamiryn3323 xocamiryn3323

04-08-2020
Business

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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 800 units (products) in her basement, 25 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. 200 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?

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topeadeniran2 topeadeniran2

06-08-2020

Answer: 1155

Explanation:

The solution guess thus to calculate the units in Ending Inventory:

Units of product on hand: 800 units

Add: Units in transit 180

Add: Units on consignment 200

Less: Damaged units 25

The number of units that Emma should include in her company’s period-end inventory will be:

= (800+180+200) - 25

= 1180 - 25

= 1155

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