INVENTORY COSTING AND LCM Ortman Enterprises sell a chemical used in various manufacturing processes. On January 1, 2009, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon.

During 2009, Ortman made the following purchases:

Date Gallons Cost per Gallon Total Cost 2/20 10,000,000 $0.52 $ 5,200,000 5/15 25,000,000 0.56 14,000,000 9/12 32,000,000 0.60 19,200,000 During 2009, Ortman sold 65,000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on 6/29 and 30,000,000 gallons were sold on 11/22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman 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 chemical is $0.76 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 $0.58 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.)