Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows:

$152,000 Sales Revenue Cost of Goods Sold 18,000 Beginning Inventory 97,000 Purchases Goods Available for Sale 115,000 30,420 Ending inventory (FIFO cost) 84,580 Cost of Goods Sold 67,420 Gross Profit 34,000 Operating Expenses 33,420 Income from Operations 10,026 Income Tax Expense (30%) 23,394 Net Income Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the following data relating to the ending inventory: Market Value Purchase Cost per Unit Item Quantity Per Unit Total A 1,800 $3.60 6,480 $4.60 4.00 2.60 800 3,200 10,660 4,100 2.60 1.30 5.60 10,080 3.60 D 1,800 $30,420