QS 5-1 (Algo) Inventory ownership LO C1Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emmalooks over her inventory and finds that she has• 800 units (products) in her basement, 11 of which were damaged by water and cannot be sold.•170 units in her van, ready to deliver per a customer order, terms FOB destination.⚫ 150 units out on consignment to a friend who owns a retail store.How many total units should Emma include in her company's period-end inventory?Units in Ending Inventory:Units stored in basementAdd:Less:800 unitsTotal units in period-end inventoryunits

1. In case FOB destination, seller is the owner till it reaches the buyer. So, this is part of year…

Answered: Homestead Crafts, a distributor of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 6-2 (Algo) Inventory costs LO C1 Walberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,800. Walberg Associates insured the shipment at a cost of $270. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $610. Determine the cost of inventory. Cost of inventory Total cost of inventory $ 0
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