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Homestead Crafts,a distributor of homemade gifts,operates out of owner Emma Finn’s house. How many units should Emma include in her company’s period - end inventory?

Homestead Crafts,a distributor of homemade gifts,operates out of owner Emma Finn’s-example-1

1 Answer

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Answer:

Period-end Inventory = 1,710 units

Step-by-step explanation:

Units in Ending Inventory

Units of Product on hand 1,300 units

Add:

Units in-transit 350 units

Units in-consignment 80 units

Less:

Damaged (20) units

Total units in period-end inventory= 1,710 units

Since the products are in transit and some products are out of consignment to the homestead crafts, therefore, both the products belong to them. Damage products need to removed to reduce the inventory balance.

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