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 Date Number of Units Unit Cost Number of Units Sales Price January 1 (beginning inventory) 535 $3.20 January 24 335 $4.70 February 8 635 $3.30 March 16 June 11 595 $4.90 335 $3.45 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.) Ending inventory 2. Compute the gross profit for the first six months of 2017 by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Gross profit 3. Would the gross profit be higher, lower, or the same if Neverstop used the weighted-average costing method rather than the FIFO method? Lower Higher Remain the same 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Record entry Clear entry View general journal Assume that because of a clerical error, the ending inventory is reported to be 475 units rather than the actual number of units (575) 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 2017. of cost of sales 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30, 2017. of current assets