The document provides information about Laker Company's inventory and sales for January. It reports beginning inventory, purchases on January 20th and 30th, and ending inventory on January 31st. It asks to [1] compute gross profit for each inventory method (FIFO, LIFO, weighted average), [2] identify the highest gross profit method, [3] whether weighted average gross profit falls between FIFO and LIFO, and [4] the highest gross profit method if costs were rising instead of falling.

1. Required information [The following information applies to the questions displayed belowi]
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
purghase, and 43 are from beginning inventory. 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? 2. Which
method yields the highest gross profit? 3. Does gross profit using weighted average fall between
that using FIFO and LIFO? 4. If tosts were rising instead of falling. Which method would yleld
the highest gross profit? Complete this question by entering your answers in the tabs below.
Compute gross profit for the month of January for Laker Company for the four inventory
methods. Vote: Round cost per unit to 2 decimal places and final answers to the nearest whole
dollars. 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 tosts were rising instead of
falling, which method would yield the highest gross profit? Complete this question by entering
your answers in the tabs below. 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?