The following note was contained in a recent Visions Motor Company annual report:

NOTE 8. INVENTORIESAUTOMOTIVE SECTOR
Inventories at December 31 were as follows (dollars in millions)
	Current Year				Previous Year
Raw material, work in process, & supplies		$	3,106			$	4,550
Finished products			6,653				6,851
Total inventories at FIFO			9,759				11,401
Less LIFO Adjustment			(1,120	)			(841	)
Total		$	8,639			$	10,560

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 $127,169 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?