se 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 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	=	880
January 25	Sales							125	units	@	$ 18.00
January 30	Purchase	250	units	@	$ 7.50	=	1,875
	Totals	525	units				$ 4,240	250	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?