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 250 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 units from beginning inventory Date Activities Units Acquired at cost Units sold at Retail January 1 Beginning inventory 165 units @ $ 9.00 = $ 1,485 January 10 Sales 125 units $ 18.00 January 20 Purchase 110 units @ $8.00 January 25 Sales $ 18.00 January 30 Purchase 250 units $ 7.50 = 1,875 Totals 525 units $ 4,240 250 units @ 880 125 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? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory met decimal places and final answers to the nearest whole dollars.) LAKER COMPANY For Month Ended January 31 Specific Weighted Identification Average $ 4,500 $ 4,500 $ FIFO LIFO 4,500 $ 4,500 Sales Cost of goods sold Gross profit $ 4,500 $ 4,500 $ 4,500 $ 4,500 ROG1 Req 2 to 4 >