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 310 units from the January 30 purchase, 5 units from the January 20 purchase, and 30 units from beginning inventory. Date January 1 Activities Beginning inventory January 10 January 20 January 25 January 30 Purchase Sales Purchase Totals Sales Units Acquired at Cost 205 units @ $ 13.00 = 140 units @ $ 12.00 = 310 units @ $ 11.50 = 655 units Units sold at Retail $ 2,665 165 units @ $ 22.00 1,680 145 units @ $ 22.00 3,565 $ 7,910 310 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? 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 S 6,820 Cost of goods sold Gross profit $ 6,820 $ 0 $ 0 $ 0 Req 1 Req 2 to 4 >