Required information Use the following information for the Exercises 3-7 below. (Algo) [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 275 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 Activities Beginning inventory Sales January 25 January 30 Purchase Sales Purchase Totals Units Acquired at Cost 175 units @ $ 10.00 = Units sold at Retail $ 1,750 135 units @ $ 19.00 130 units @ 275 units @ 580 units $ 9.00 = 1,170 140 units @ $ 19.00 $ 7.00 = 1,925 $ 4,845 275 units Exercise 6-5 (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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales $ 4,200 Cost of goods sold 1,945 4.200 $ 1,819 4,200 $4,200 1,960 1,680 Gross profit $ 2,255 $ 2,381 $ 2,240 $ 2,520 < Req 1 Req 2 to 4 >