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 2017. The company uses a perpetual inventory system: Purchases Sales Number of Units Sales Price Number of Units 565 Unit Cost $3.80 365 $5.30 Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 665 $3.90 625 $5.50 365 $4.05 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 $ 2,358.84 Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming 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 View journal entry worksheet No Date General Journal Debit Credit 1 January 24 Trade receivables 1,934.50 Sales 1,934.50 2 January 24 Cost of sales 1,387.00 Inventory 1,387.00 3 February 08 2,593.50 Inventory Trade payables 2,593.50 4 March 16 Trade receivables 3,437.50 Sales 3,437.50 2 5 March 16 Cost of sales 2,425.00 Inventory 2,425.00 6 June 11 1,478.25 Inventory Trade payables 1,478.25