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: Purchases Number of Units 530 Unit Cost $3.10 Sales Number of Units Sales Price 330 Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 $4.60 630 $3.20 330 $4.60 630 $3.20 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. overstatement of cost of sales 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. Understatement of current assets 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: Purchases Number of Units 530 Unit Cost $3.10 Sales Number of Units Sales Price 330 Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 $4.60 630 $3.20 330 $4.60 630 $3.20 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. overstatement of cost of sales 5b. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. Understatement of current assets