Mamma's Cafe Assigned the Following Costs to Inventory on December

Essay

Mamma's Cafe assigned the following costs to inventory on December 31:
$\begin{array}{l}\text { Cash purchase costs } &\$6,000\\\text { Commissions paid to Mamma's sales staff }&230\\ \text {Transportation-in costs } &310\\ \text {Cell phone charges for Mamma's' CEO } &400\\ \text { Handling cost associated with unloading the inventory } &150\\ \text { Labor and overhead costs attributable to repackaging inventory } &\underline{280}\\ \text { Total cost} &\underline{\$7.370}\\\\ \text { Current net income } &\underline{\$24.000}\\\end{array}$
Determine the correct December 31 inventory and recalculate current net income that is appropriate under generally accepted accounting principles. Justify your new valuation of inventory.