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 200 170 $1,080,400 170 180 $1,032,400 180 220 $996,400 The company's fixed manufacturing overhead per unit was constant at $560 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 Conting Net Operating Incomes Yoar 1 Year 2 Your 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income C variable costing for internal management reports ana apsorption cosung for external reports to snarenoiders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories: Beginning (units) Ending (units) Variable conting net operating income 200 170 $1,080, 400 170 180 $1,032,400 180 220 $996,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Assume in Year 4 that the company's variable costing net operating income was $984,400 and its absorption costing ne 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? inventory during Year 4 Fixed manufacturing overhead cost