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: Purchases Sales Dato anber of Units Unit Cont Number of Units Sales Price January 1 (beginning inventory) 585 $4.20 January 24 385 February 55.70 $4.30 March 16 385 $5.70 June 11 $4.30 685 685 es 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.) Gross proft 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 Assume that because of a clerical error the ending inventory is reported to be 1,085 units rather than the actual number of units (1185) 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 Sb If FIFO is used, calculate the amount of the understatement or overstatement in the current assets at June 30 of the current year of current were