Required information Use the following information for the Exercises 3-7 below. (Algo) Skip to question [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 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 190 units @ $ 7.00 = $ 1,330 January 10 Sales 150 units @ $ 16.00 January 20 Purchase 110 units @ $ 6.00 = 660 January 25 Sales 130 units @ $ 16.00 January 30 Purchase 280 units @ $ 5.50 = 1,540 Totals 580 units $ 3,530 280 units Exercise 5-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 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?