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Individual Assignment - Variable & Absorption Costing Sinar Terang manufactures heavy duty street lighting systems for municipalities. The company uses variable costing for internal management
Individual Assignment - Variable & Absorption Costing Sinar Terang manufactures heavy duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholder. The company has provided the following data: Year 1 Year 2 Year 3 Inventories: Beginning (Units) 200 170 180 Ending (Units) 170 180 220 Variable Costing Net Operating Income 1.080.400 1.032.400 996.400 The company fixed manufacturing overhead per unit was costant at $560 for all three years. Required: 1. Absorption costing Net Operating Income for year 1, 2, 3 2. Reconciliation
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