#3 and #4

1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on gross profit? gross profit is overstated no effect on gross profit not enough information to know gross profit is understated D Question 4 0.8 pts A company using the periodic system counted 700 units on hand at year-end. The following purchases were make during the first year of operations: T Jan 19 June 6 Oct 2 2,000 units purchased at $4 per unit 300 units purchased at $5 per unit 500 units purchased at S6 per unit Using the periodic system, costing by the first in, first-out method (FIFO), what is the cost of the 700 units in inventory at year-end? $2.800 58,500 $4.000 $9,700