E7-16 (Algo) Analyzing Notes to Adjust Inventory from LIFO to FIFO LO7-6 The following note was contained in a recent Visions Motor Company annual report: NOTE 8. INVENTORIES-AUTOMOTIVE SECTOR Inventories at December 31 were as follows (dollars in millions) Raw material, work in process, & supplies Total inventories at FIFO Finished products Less LIFO Adjustment Total Current Year Previous Year $ 3,196 6,623 $ 4,500 6,871 9,819 (1,150) 11,371 (761) $ 8,669 $10,610 About one-third of inventories were determined under the last-in, first-out method. Required: 1. What amount of ending inventory would have been reported in the current year if Visions had used only FIFO? 2. The cost of goods sold reported by Visions Motor Company for the current year was $127,209 million. Determine the cost of goods sold that would have been reported if Visions had used only FIFO for both years. 3. To lower the cash outflows for taxes, which of the following should the Visions Motor management choose to use for certain of its inventories when the costs are rising? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What amount of ending inventory would have been reported in the current year if Visions had used only FIFO? (Enter your answer in millions.) Reported ending inventory million Required 1 Required 2 > Required 1 Required 2 Required 3 The cost of goods sold reported by Visions Motor Company for the current year was $127,209 million. Determine the cost of goods sold that would have been reported if Visions had used only FIFO for both years. (Enter your answer in millions.) Cost of goods sold million < Required 1 Required 3 To lower the cash outflows for taxes, which of the following should the Visions Motor management choose to use for certain of its inventories when the costs are rising? Which of the following should the Visions management choose to use for certain of its inventories when the costs are rising? < Required 2 Required 3