K. Drew Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:

Inventories ($ in millions)

	2013	2012
Total Inventories	$625	$604
LIFO Reserve	(83)	(51)
	$542	$553

This company's income statement reported cost of goods sold of $3,120 million for the fiscal year ended december 31, 2013.

Required:

a. Drew adjusts the LIFO reserve (Allowance to Reduce Inventory to LIFO) at the end of its fiscal year. Prepare the December 31, 2013, adjusting entry to record the cost of goods sold adjustment.

b. If Drew had used FIFO to value its inventories, what would cost of goods sold have been for the 2013 fiscal year?