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 Number of Units Unit cost 545 $3.40 Sales Number of Units Sales Price 345 $4.90 645 $3.50 Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 345 $4.90 645 $3.50 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all 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 required" In the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 Record sales on account. Note: Enter dobits before credits Date General Journal Debit Credit January 24 Record entry Clear entry View general Journal round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No jou first account field.) View transaction list Journal entry worksheet > Record sales on account. Note: Enter debits before credits. General Journal Debit Credit OS Date March 16 Record entry Clear entry View general journal pui liiast uansALLIONS DIE Ol alcuuildiu Liat ule welyneu-aveiaye meu iu is us round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal first account field.) View transaction list Journal entry worksheet 53 > 1 2 3 4 5 6 Record cost of sales on goods sold on account. Note: Enter debits before credits. Debit General Journal Date Credit ces March 16 Record entry Clear entry View general Journal purchase u anisaLUIS de la Luuran uit die weye average ou is useu. U HOLOUR Meeue Laicus round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry req first account field.) View transaction list Journal entry worksheet 4 5 6 Record purchase of goods on account. Note: Enter debits before credits. General Journal Debit Credit Date June 11 Record entry Clear entry View general journal Assume that because of a clerical error, the ending inventory is reported to be 1,045 units rather than the actual number of units (1145) 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 the current year. of cost of sales 5. If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year. or current assets