FIFO is used for inventory costing. Comparing and Contrasting the Effects of Inventory Costing Methods on Financial Statement Elements (AP7-1) Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of 2017. The company uses a perpetual inventory system: Purchases Sales Number of Units Sales Price Number of UnitsUnit Cost Date January 1 (beginning inventory January 24 February 8 March 16 June 11 500 $2.50 300 $4.00 600 $2.60 560 $4.20 300 $2.75