Analyzing Notes to Adjust Inventory from LIFO to FIFO The following note was contained in a recent

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Analyzing Notes to Adjust Inventory from LIFO to FIFO
The following note was contained in a recent Ford Motor Company annual report:

NOTE 8. INVENTORIES-AUTOMOTIVE SECTOR Inventories at December 31 were as follows (dollars in millions) Current Year $3,0

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 $127,103 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.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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