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Use the following information for the Exercises below. (Algo)

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[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 periodic inventory system. For specific identification, ending inventory consists of 228 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 43 are from beginning inventory.

Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	154	units	@	$	6.00	=	$	924
Jan.	10	Sales										86	units	@	$	15.00
Jan.	20	Purchase	74	units	@	$	5.00	=		370
Jan.	25	Sales										94	units	@	$	15.00
Jan.	30	Purchase	180	units	@	$	4.50	=		810
		Totals	408	units					$	2,104		180	units

Exercise 5-4 (Algo) Periodic: 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?