INVENTORY COSTING AND LCM J&J Enterprises sells paper cups to fast-food franchises. On January 1, 2009, J&J had 5,000 cups on hand, for which it had paid $0.10 per cup. During 2009, J&J made the following purchases and sales:

Date Units Cost per Unit Total Cost 2/20 100,000 $0.12 $12,000 5/15 57,000 0.14 7,980 9/12 85,000 0.15 12,750 During 2009, J&J sold 240,000 cups at $0.35 per cup (80,000 cups were sold on 4/2 and 160,000 cups were sold on 10/20), leaving an ending inventory of 7,000 cups. J&J uses the lower of cost or market for its inventories, as required by generally accepted accounting principles.

Required:

. Assume that the market value of the cups is $0.38 per gallon on December 31, 2009. Compute the cost of ending inventory using the FIFO, LIFO, and average cost methods. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)

. Assume that the market value of the chemical is $0.12 per cup on December 31, 2009. Compute the cost of ending inventory using the FIFO, LIFO, and average cost methods. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)