P7-3 Comparing and Contrasting the Effects of Inventory Costing Methods on Financial Statement Elements LO7-2, 7.3 Neverstop Corporation sells item. A as part of its product line. Information about the beginning inventory, purctiases, and sales of atem A are given in the following table for the first six months of the current yeat. The company uses a perpotual inventery systemt? Required: 1. Compute the cost of ending inventary by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Answer is complete but not entirely correct. 2. Compute the grass 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.) Answer is complete but not entirely correct. 3. Would the gross profit be higher, lower, or the same if Neverstop used the weighted-average costing method rather than the FiFo method? Remain the same Higher Lower 4. Prepare joumal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that ali sales and purchase transactions are on account and 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 requilred" in the first account field.) Assume that because of a clerical error, the ending inventary is reported to be 1,055 units rather thon the actual number af units (thi55) on hand. 5a. If FIFO is used, calculate the amount of the understatement or overstatement in the cost of sales for the licst six months of the current yeac