5-3 Jorgansen lighting inc manufactures heavy duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data Year 1 year 2 year 3 Beginning units 200 170 180 Ending units 170 180 220 Variable costing net operating income $1,080,400 $1,032,400 $996,400 1. Determine each years absorption costing net operating income. Present your answer in the form of a reconciliation report. 2. In year 4 the companys variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012.400. did inventories increase or decrease during year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4.