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

Required:
1. What amount of ending inventory would have been reported in the current year if Ford had used only FIFO?
2. The cost of goods sold reported by Ford for the current year was $129,821 million. Determine the cost of goods sold that would have been reported if Ford had used only FIFO for both years.
3. Explain why Ford management chose to use LIFO for certain of itsinventories.

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NOTE 5. INVENTORIES-AUTOMOTIVE SECTOR Inventories at December 31 were as follows (dollars in millions) Current Year $3,842 6.335 10,177 Previous Year $3.174 4,760 7,934 (957) $6,977 Raw material, work in process, & supplies Finished products Total inventories at FIFO Less LIFO Adjustment Total (996) $9,181 About one-third of inventories were determined under the last-in, first-out method.