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.

5a and 5b as well please

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 Sales Date Number of Unats Unit cont Number of Unit Sales Price January 1 (beginning inventory) 515 $2.80 January 24 315 February 8 615 $2.90 March 16 315 $4.30 June 11 615 52.90 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 complete and correct. Ending inventory $3,221.23 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.) Answer is complete and correct. Gross profit $933.50 3. Would the gross profit be higher, lower, or the same if Neverstop used the weighted average costing method rather than the FIFO method? Higher Lower Remain the same 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.) No Answer is complete but not entirely correct. General Journal Accounts receivable Date January 24 Credit Debit 1.354.50 1 Sales 1,354.50 2 January 24 882.00 Cost of sales Inventory 882.00 February 08 1.783.50 > Inventory Cash 3 1.783.50 4 March 16 1,354.50 Accounts receivable Sales O 1,354.50 5 March 16 905.77 Cost of sales Inventory OO 905.77 6 June 11 1.783 50 Inventory Cash 83 1,783.50 Assume that because of a clerical error, the ending Inventory is reported to be 1,015 units rather than the actual number of units (1115) on hand. Sa. 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 assets