Question
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
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 | |
| Inventories | |||
| Beginning (units) | 200 | 150 | 180 |
| Ending (units) | 150 | 180 | 230 |
| Variable costing net operating income | $300,000 | $279,000 | $260,000 |
The companys fixed manufacturing overhead per unit was constant at $550 for all three years.
Required:
1. Calculate each years absorption costing net operating income. (Enter any losses or deductions as a negative value.)
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 | |
| Inventories | |||
| Beginning (units) | 200 | 150 | 180 |
| Ending (units) | 150 | 180 | 230 |
| Variable costing net operating income | $300,000 | $279,000 | $260,000 |
The companys fixed manufacturing overhead per unit was constant at $550 for all three years.
Required:
1. Calculate each years absorption costing net operating income. (Enter any losses or deductions as a negative value.)
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 | |
| Inventories | |||
| Beginning (units) | 200 | 150 | 180 |
| Ending (units) | 150 | 180 | 230 |
| Variable costing net operating income | $300,000 | $279,000 | $260,000 |
The companys fixed manufacturing overhead per unit was constant at $550 for all three years.
Required:
1. Calculate each years absorption costing net operating income. (Enter any losses or deductions as a negative value.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Training And Development Audit
Authors: Rosemary Harrison
2nd Edition
0955970725, 978-0955970726
