While attending a local college, music major Anjolie Webster accepts a temporary position with a small manufacturing firm. Currently, the firm uses LIFO to account for inventory, but the owner is "just curious" about how the financial results would look if the company used FIFO. Before the owner leaves for her voice lesson, she hands Webster a photocopy of the inventory data for the current period (summarized below). Beginning inventory of 1000 units at $ 30 cost. Ending inventory of 800 units. Sales of 1100 units. Three inventory purchases (listed from earliest purchase to latest purchase): 400 units at $ 27 each, 300 units at $ 25 each, and an unreadable number of units at $ 22 each. (Unfortunately, when the owner copied the original document, she left a yellow sticky note covering some of the inventory information. ) Current assets (less inventory) of $75000. Current liabilities of $ 65000. Using the information provided, determine which of the following statements is least accurate All else equal, compared to LIFO, using FIFO would result in: （）
A. cost of goods sold of $ 32700.
B. a lower ending inventory balance.
C. a current ratio of approximately 1.60.
参考答案：C
解析：
To calculate the current ratio (which includes the ending inventory balance) using FIFO, we first need to determine how many units were purchased in the third illegible purchase order (calculations follow). Ending inventory = beginning inventory + purchases - sales, so, purchases = sales + ending in-ventory-beginning inventory = 1100 + 800 - 1000 = 900. Third purchase units = 900 -400 - 300 = 200 FIFO ending inventory = [(300 × 27 ) + (300 × 25 ) + (200 × 22) ] = $ 20000 FIFO current ratio (all else equal) = (75000 + 20000)/65000 = approximately 1.46