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Jorgansen Lighting, Incorporated, manufactures heavy duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external

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Jorgansen Lighting, Incorporated, 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 Inventories Ending (wit) Variable costing networating Income The company's fixed manufacturing overhead per unit was constant at $550 for all three years Beginning (units) 210 160 120.000 190 190 20 $ 250.000 $ 279,00 Required: 1. Calculate each year's absorption costing net operating Income (Enter any losses or deductions as a negative value.) Answer is not complete. Reconciliation of Variable Costing and Absorption Conting Net Operating Incomes Year 1 Year 2 Year 3 290 000 279.000 250.000 Variable costing net operating income Add dodad) food manufacturing overhead deleted in released from) inventory under tisorption costing Absorption costing net operating income Jorgansen Lighting, Incorporated, 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 Yoar 160 Inventaries Beginning (units) Ending (units) Variable costing net operating income 210 160 $ 290,000 190 240 $ 250,000 $ 279,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Assume in Year 4 that the company's variable costing net operating income was $260,000 and its absorption costing net operating come was $300,000. Did inventories increase or decrease during Year 4? Increase O Decrease How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? med manufaduring overhead cost inventory during Year 4

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