Your company manufactures plastic pails and uses raw liquid plastic in bulk form $($which it stores in a single large heated tank$)$ to make the pails. The following information describes inventory$/$purchase of the raw liquid plastic:

Inventory as of Dec $31/2019$: $6900$ gallons $$18,000$ value

Purchased Jan $28/2020$: $8,000$ gallons at a cost of $$300,000$

Purchased Sept $12/2020$: $15,000$ gallons at a cost of $$408,000.$

Inventory as of Dec $31/2020$: $10,393$ gallons

Note: all of the $2020$ deliveries were stored in the aforementioned tank, and the company uses average costs to value inventory.

Given the above information, what is the cost of raw liquid plastic that should be charged to the $2020($Jan to Dec$)$ Income Statement? The market price of raw liquid plastic at Dec $31,2020$ is $$34$ per gallon.

Question $5$ options:

$$456,630$

$$436,630$

$$473,648$

$$407,497$