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) 206 159 $296,600 159 183 $273,200 183 227 $250,800 Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $559 for all three years Required: 1. Calculate each year's absorption costing net operating income. Present your answer in the form of a reconciliation report. (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 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income