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: Vear 1 Year 2 Yean Iwentories Veginning (units) Ending (unita) Varlable costing net operating incose 218 150 $290,000 150 190 $29,000 390 230 $260,000 The company's fixed manufacturing overhead per unit was constant at $400 for all three yean Exercise 7-3 Port 1 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as e negative velue.) Reconcillation of Varlabile Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 210 S 150 $ 190 Variable conting net operating income Add (deduct) foed manutacturing overtead daferred in (releaned trom) knverdory under absorption conting Absorpilion costing net operating income