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)		540		$	3.30
January 24									340		$	4.80
February 8		640		$	3.40
March 16									600		$	5.00
June 11		340		$	3.55

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 2017 by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.)

3.	Would the gross profit be higher, lower, or the same if Neverstop used the weighted-average costing method rather than the FIFO method?
	multiple choice Lower Remain the same Higher

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.)

Assume that because of a clerical error, the ending inventory is reported to be 480 units rather than the actual number of units (580) 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.

5b.	If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30, 2017.