The management of Kauer Company has engaged you to assist in the preparation of year-end (December 31) financial statements. You are told that on November 30, the correct inventory level was 150,000 units. During the month of December, sales totaled 50,000 units including 25,000 units shipped on consignment to Towsey Company. A letter received from Towsey indicates that as of December 31, it had sold 20,000 units and was still trying to sell the remainder. A review of the December purchase orders to various suppliers shows the following:

Kauer Company uses the "passing of legal title" for inventory recognition. Compute the number of units that should be included in the year-end inventory.

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Purchase Order Date Invoice Date Number of Units Date Shipped Date Received Terms Dec. 2, 2012 Dec. 11, 2012 Dec. 13, 2012 Dec. 23, 2012 Dec. 28, 2012 Dec. 31, 2012 Jan. 3, 2013 Jan. 3, 2013 Jan. 2, 2013 Dec. 26, 2012 Jan. 10, 2013 Jan. 10, 2013 10,000 8,000 13,000 12,000 10,000 15,000 Jan. 2, 2013 Dec. 22, 2012 Dec. 28, 2012 Jan. 2, 2013 Dec. 31, 2012 Jan. 3, 2013 Jan. 3, 2013 Dec. 24, 2012 Jan. 2, 2013 Jan. 3, 2013 Jan. 5, 2013 Jan. 6, 2013 FOB shipping point FOB destination FOB shipping point FOB shipping point FOB destination FOB destination