Fire Wands and Sips Wands were being left behind on the map by townies despite having nothing else to do and being accounted for in storage under Weapon racks Misc. category.
Checked items.xml and both <firewand> and <sipswand> entries were missing the <stackable> and <stackablesize> values. Added these and pow kablam, wands put away all neat and tidy.
Checked further into the file and noticed <throwing rock> is also missing the <stackable> and <stackablesize> values in it's entry. Didn't have such an item on the map to confirm they are stored when stackable and stackablesize values added.
I tweaked the five corresponding head entries (goblinhead, hobgoblinhead, ghoulhead, trollhead & snickerhead) in items.xml so they can be stored in the decorative chests by adding these lines to each head object.