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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

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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: Inventories Beginning (unita) Ending units Variable costing net operating income Year 200 170 51.080,400 Year 2 Year) 180 180 220 51,032,400 9996.400 170 The company's fixed manufacturing overhead per unit was constant at 5560 for all three years. 2. Assume In Year 4 that the company's variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400 a. Did inventories increase or decrease during Year 4? Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Answer is complete but not entirely correct. Fixed manufacturing overhead cost deferred in inventory during Year 4 $ 100.800

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