answer this, Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 300 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date Activities Units Acquired at Cost Units sold at Retail January 1 Beginning inventory 200 units @ $ 12.50 = $ 2,500 January 10 Sales 160 units @ $ 21.50 January 20 Purchase 130 units @ $ 11.50 = 1,495 January 25 Sales 140 units @ $ 21.50 January 30 Purchase 300 units @ $ 11.00 = 3,300 Totals 630 units $ 7,295 300 units Exercise 5-7A (Algo) Periodic: Gross profit effects of inventory methods LO P3, A1 Assume the periodic

Required:

1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system.
2. Which method yields the highest gross profit?
3. Does gross profit using weighted average fall between that using FIFO and LIFO?
4. If costs were rising instead of falling, which method would yield the highest gross profit?