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I've figured out some of the answers but the amount of overstatement and understatement questions in 5a and 5b is what I am stuck on,
I've figured out some of the answers but the amount of overstatement and understatement questions in 5a and 5b is what I am stuck on, help is appreciated thanks.
Assume that because of a clerical error, the ending inventory is reported to be 680 units rather than the actual number of units (780) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of the current year. 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. 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 the current year. The company uses a perpetual inventory system: Required: 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Assume that because of a clerical error, the ending inventory is reported to be 680 units rather than the actual number of units (780) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the first six months of the current year. 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. 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 the current year. The company uses a perpetual inventory system: Required: 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.)
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