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) Ending (units) Variable costing net operating income 210 170 $300,000 178 200 $269,000 200 230 $260,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Required: 1. Calculate each year's absorption costing net operating income (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income $ 290,000 $ 269,000 s 260.000 Add deduct) fixed manufacturing overhead deferred 22 400 16.800 16 800 In released from inventory under absorption costing Absorption conting net operating income $277.600$ 285,800 $ 276 800 Prev of 5 Next >