Required:

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

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.$)$

Would the gross profit be higher, lower, or the same if Neverstop used the weighted$-$average costing method rather than the FIFO method?

OHigher

ORemain the same

OLower

in the first account field.$)$

Journal entry worksheet

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$\backslash$table$[[,1,2,3,4,5,6]]$

Record sales on account.

Note: Enter debits before credits.

Assume that because of a clerical error, the ending inventory is reported to be $480$ units rather than the actual number of units $(580)$ on hand.

$5$a$.$ 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.