[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 218 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 33 are from beginning inventory.

Date	Activities	Units Acquired at Cost						Units sold at Retail
January 1	Beginning inventory	149	units	@	$ 6.00	=	$ 894
January 10	Sales							91	units	@	$ 15.00
January 20	Purchase	69	units	@	$ 5.00	=	345
January 25	Sales							89	units	@	$ 15.00
January 30	Purchase	180	units	@	$ 4.50	=	810
	Totals	398	units				$ 2,049	180	units

rev: 10_14_2020_QC_CS-233978

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?

Compute gross profit for the month of January for Laker Company for the four inventory methods. Note: 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
Cost of goods sold
Gross profit	$	$	$	$