Question
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
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) | 210 | 170 | 190 |
| Ending (units) | 170 | 190 | 230 |
| Variable costing net operating income | $300,000 | $269,000 | $260,000 |
The companys fixed manufacturing overhead per unit was constant at $400 for all three years.
Required:
1. Calculate each years absorption costing net operating income. (Enter any losses or deductions as a negative value.)
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305838
