The LIFO Inventory Reserve

Southeast Steel Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company$$s accounting records:

Current assets $($under FIFO$)$ $$9,000,000$

Current liabilities $6,000,000$

Inventory under LIFO $2,200,000$

Inventory under FIFO $2,800,000$

Calculate the company$$s $($a$)$ LIFO inventory reserve and $($b$)$ current ratio assuming $($i$)$ FIFO and $($ii$)$ LIFO.

Round your answer to two decimal points.

a$.$ LIFO inventory reserve Answer

$600,000$

FIFO LIFO

b$.$ Current ratio Answer

$1\mathrm{.}5$

Answer

$3\mathrm{.}2$