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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

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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 3 190 Inventories Beginning (unito) Inding (unit) Variable costing net operating income 210 160 $290,000 160 190 $269,000 240 $260,000 The company's fixed manufacturin overhead per unit was constant at $550 for all three years. Exercise 4-3 (Algo) Part 2 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operating Income was $290,000 a. Did Inventories increase or decrease during Year 4

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