9 Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 220 170 170 200 200 230 $ 290,000 $ 279,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 2. Assume in Year 4 the company's variable costing net operating income was $260,000 and its absorption costing net operating income was $310,000. a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Complete this question by entering your answers in the tabs below. Required 2a Required 2b Did inventories increase or decrease during Year 4? Did inventories increase or decrease during Year 4? ired 2. Required 2h.