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: Purchase Sales Date Number of Units Unit Cont Number of Unita Bales Price January ! (beginning inventory) 520 $2.90 January 24 320 $4.40 February 8 $3.00 March 16 320 $4.40 June 11 620 $3.00 620 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.) Answer is not complete. 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 profit 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.) Answer is not complete. No General Journal Data January 24 Debit Credit 1 Accounts receivable Sales 2 January 24 Cost of sales Inventory 3 February 08 Inventory Accounts payable 4 March 16 Accounts receivable Sales 00 5 March 16 Cost of sales Inventory 6 June 11 Inventory Accounts payable >>