Laker Company reported the following January purchases and sales data for Its only product. For specific identification, ending Inventory consists of 280 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning Inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals sume the periodic Inventory system is used. quired: Units Acquired at Cost $7.00 = 190 units @ 110 units. @ 280 units @ 580 units $6.00 = $5.50 = $ 1,330 660 1,540 $3,530 Units sold at Retail 150 units 130 units 280 units @ @ $16.00 $ 16.00 1. Compute gross profit for the month of January for Laker Company for the four Inventory methods using the periodic Inventor system. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO?

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