On January $1,2024,$ Displays Incorporated had the following account balances:

From January $1$ to December $31,$ the following summary transactions occurred:

a$.$ Purchased inventory on account for $$349,000.$

b$.$ Sold inventory on account for $$665,000.$ The cost of the inventory sold was $$329,000.$

c$.$ Received $$594,000$ from customers on accounts receivable.

d$.$ Paid freight on inventory received, $$43,000.$

e$.$ Paid $$339,000$ to inventory suppliers on accounts payable of $$347,000.$ The difference reflects purchase discounts $$8,000.$

f$.$ Paid rent for the current year, $$61,000.$ The payment was recorded to Rent Expense.

g$.$ Paid salaries for the current year, $$169,000.$ The payment was recorded to Salaries Expense.

Year$-$end adjusting entries:

a$.$ Supplies on hand at the end of the year are $$8,000.$

b$.$ Accrued interest expense on notes payable for the year.

c$.$ Accrued income taxes at the end of December are $$37,000.$

Complete this question by entering your answers in the tabs below.

Analyze the following for Displays Incorporated:

$($a$)$ Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming

the ending balance of inventory under LIFO would have been $$114,000,$ calculate the LIFO reserve.

LIFO reserve is:

$($b$)$ Assume the $$77,000$ beginning balance of inventory comes from the base year with a cost index of $1\mathrm{.}00.$ The cost index at the end

of $2024$ of $1\mathrm{.}10.$ Calculate the amount the company would report for inventory using dollar$-$value LIFO.

Ending inventory using dollar$-$value LIFO:

$($c$)$ Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO $($or dollar$-$value LIFO$)$

instead of FIFO in periods of rising inventory costs and stable inventory quantities.

Inventory turnover ratio

Average days in inventory

Gross profit ratio