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.

Ending inventory = beginning inventory + units purchased – units sold, so
units purchased = units sold + ending inventory – beginning inventory
= 1,100 + 800 – 1,000 = 900
Third purchase units = 900 – 400 – 300 = 200

• FIFO ending inventory = [(300 × 27) + (300 × 25) + (200 × 22)] = $20,000

• FIFO current ratio (all else equal) = (75,000 + 20,000) / 65,000 = approximately 1.46

The other choices are correct. Since prices are decreasing, FIFO cost of goods sold is higher (and gross margin is lower) than LIFO. And, FIFO ending inventory is lower than LIFO ending inventory. No LIFO calculations are necessary.