E7-19 [ LO7-6 BorgWarner Inc. Analyzing Notes to Adjust Inventory from LIFO to FIFO BorgWarner Inc. 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: Source: BorgWarner Inc. Page 385 Required: 1. What amount of ending inventory would have been reported in the current year if BorgWarner had used only FIFO? 2. The cost of goods sold reported by BorgWarner for the current year was $6.548.7 million. Determine the cost of goods sold that would have been reported if BorgWarner had used only FIFO for both years. 3. Explain why BorgWarner management chose to use LIFO for certain of its inventories