Spando Apparel Uses the LIFO Inventory Method for External Reporting

Essay

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:
Inventories ($ in millions): The company's income statement reported cost of goods sold of $3,120 million for the fiscal year ended December 31, 2013.
Required:
1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2013, adjusting entry to record the cost of goods sold adjustment.
2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2013 fiscal year?