Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases Date Feb. 20 May 15 Sept. 12 During 2019, Ortman sold 65,000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 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 principle Gallons 10,000,000 25,000,000 32,000,000 Cost per Gallon $0.52 0.56 0.60 Total Cost $5,200,000 14,000,000 19,200,000 s. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of Ending Inventory FIFO Average cost 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of Ending Inventory FIFO Average cost