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:

Year1 Year 2 Year 3 Beginning (units) Ending (units) Varlable costing net 212 167 167 191 191 234 $291,300 $269,100$257,400 operating income The company's fked manufacturing overhead per unit was constant at $560 for all three years. Section Break Exercse 6-3 Reconcillation of Ab Operating Incomes [LO6-3] value: 5.00 points Exercise 6-3 Part1 Required: 1. Determine each year's absorption costing net operating income. ing Year 1 Year 2 Year 3 Variable costing net operating income d deferred in (released from) Absorption costing net operating Hints References eBook & Resources Hint #1 value: 5.00 points Exercise 6-3 Part 2 2. In Year 4, the company's variable costing net operating income was $242,500 and its absorption costing net operating income was $279,300. a. Did inventories increase or decrease during Year 4? Decrease Increase b. How much fixed manufacturing overhead cost was deferred in or released from inventory during Year 4