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	Year 3
Inventories
Beginning (units)	200	160	190
Ending (units)	160	190	220
Variable costing net operating income	$ 300,000	$ 269,000	$ 260,000

The companys fixed manufacturing overhead per unit was constant at $560 for all three years.

Required:

1. Calculate each years absorption costing net operating income.

variable costing net operating income

Add deduct fixed manufacturing overhead deffered in release form invetory under absorption costing

absorption costing net operating income