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, 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 Sales Purchases Number of Units Unit Cost 60 $4.50 Humber of units 400 Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 700 54.60 $6.00 56.00 ook 400 700 54.60 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) rences Edindir Terme 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method (Do not round infermediate calculations and round the final answer to 2 decimal places.) Grapro 3 Would the gross profit be higher lower, or the same ir Neverstop used the weighted average costing method rather than the FIFO method? Lower Higher O'Remain the same Next > Prex 1 Prepare journal entres to record the purchase alla sale transactions, as wes as the cost of sales astung matatand 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 y required in the it account field) 10 Verw transaction Journal entry worksheet Connect Ascimento - Chapter 7 1 candy Clemmy 10 po oped Assume that because of adencat error, the ending inventory is reported to be 1300 units her the 2001 on hand 6a Pro is used, calculate the amount of the understatement or overtatement in the cost of restore truth current year Durances 5b. If FFO is used, calculate the amount of the understatement or overstatement in the current state 30 of me cent