Valuation of inventory

Revenue is $402,200
Cost of sales ($243,000)
profit 159,200

ABC limited entered into a contract to supply David with catering equipment for the whole year,The agreement stated that ABC limited was to supply the equipment to David for $17,000.The cost to incurred by ABC limited to deliver the equipment were $600 and the equipment had been purchased form a large manufacturer for $14,000.The inventory has not been included by the bookkeeper as he is not sure which value to use.

How will this be treated in the income statement?