P7-3 Comparing and Contrasting the Effects of Inventory Costing Methods on Financial Statement Elements L07-2,7-3 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 Sales Date Number of Units Unit Cost Number of Units Sales Price January 1 (beginning inventory) January 24 325 February 8 $3.10 March 16 325 $4.50 June 11 $3.10 525 53.00 $4.50 625 625 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 the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Grous 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? Higher Lower Remain the same