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

Sales Revenue				$	175,000
Cost of Goods Sold
Beginning Inventory	$	18,500
Purchases		105,000
Goods Available for Sale		123,500
Ending Inventory (FIFO cost)		35,210
Cost of Goods Sold					88,290
Gross Profit					86,710
Operating Expenses					38,000
Income from Operations					48,710
Income Tax Expense (30%)					14,613
Net Income				$	34,097

Assume that you have been asked to restate the financial statements to incorporate the LC&NRV. You have developed the following data relating to the ending inventory:

				Purchase Cost						Current Replacement Cost per Unit (Net Realizable Value)
Item	Quantity			Per Unit			Total
A		1,570		$	3.00		$	4,710		$	4.35
B		820			4.00			3,280			2.50
C		3,560			5.00			17,800			4.00
D		1,570			6.00			9,420			4.50
							$	35,210