High Tension Transformers Inc. manufactures heavy-duty transformers for electrical switching stations. 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: Inventories: Beginning (units) Ending (units) Variable costing operating profit Year 1 Year 2 Year 3 180 150 160 150 160 200 $292,400 $269,200 $251,800 The company's fixed manufacturing overhead per unit was constant at $450 for all three years. Required 1- Determine each year's absorption costing operating profit. Present your answer in the form of a reconciliation report. 2- In Year 4, the company's variable costing operating profit was $240,200 and its absorption costing operating profit was $267,200. Did inventories increase or decrease during Year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4