Check E7-17 (Algo) Analyzing Notes to Adjust Inventory from LIFO to FIFO LO7-6 109 soints Warner Borg is a leading global supplier of highly engineered automotive systems and components primarily for powertrain applications. The following note was contained in its recent annual report 19 02:4549 Prior Year NOTE 3 INVENTORIES, NET as of December 31 (in millions) Current Year Raw materials and supplies $ 334.9 Work in progess 97.4 Finished goods FIFO inventories LIFO reserve Total Inventories. net $ 535.1 556. (19.5) Required: 1. What amount of ending inventory would have been reported in the current year if Warner Borg had used only FIFO? (Enter your answer in millions rounded to 1 decimal place.) 2. The cost of goods sold reported by Warner Borg for the current year was $6.900.1 million Determine the cost of goods sold that would have been reported If Warner Borg had used only FIFO for both years (Enter your answer in millions rounded to 1 decimal ploce.) 3. To lower the cash outflows for taxes, which of the following should the Warner Borg management choose to use for certain of its Inventones when the costs are rising? Current Year $ 310.9 Prior Year $ 295.2 86.4 125.4 Raw materials and supplies Work in process Finished goods FIFO inventories LIFO reserve Total inventories, net 556.9 (21.8) 9.09 points (19.5) 487.5 $ 535.1 $ (8 024528 Required: 1. What amount of ending inventory would have been reported in the current year if Warner Borg had used only FIFO? (Enter your answer in millions rounded to 1 decimal place.) 2. The cost of goods sold reported by Warner Borg for the current year was $6.9001 million. Determine the cost of goods sold that would have been reported if Warner Borg had used only FIFO for both years. (Enter your answer in millions rounded to 1 decimal place.) 3. To lower the cash outflows for taxes, which of the following should the Warner Borg management choose to use for certain of its inventories when the costs are rising? 11 Reported onding Inventory 2 Cost of goods solde 3. Which method should Warner Borg use