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Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 385 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.

Date	Activities	Units Acquired at Cost	Units sold at Retail
January 1	Beginning inventory	225	units	@	$ 15.00	=	$ 3,375
January 10	Sales							175	units	@	$ 24.00
January 20	Purchase	180	units	@	$ 14.00	=	2,520
January 25	Sales							210	units	@	$ 24.00
January 30	Purchase	385	units	@	$ 12.00	=	4,620
	Totals	790	units				$ 10,515	385	units

Assume the perpetual inventory system is used.

Required:

1. Compute gross profit for the month of January for Laker Company for the four inventory methods.
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?