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 Years Inventories: Beginning unita) 200 170 180 Ending units) 170 180 Variable costing net operating income $ 1,080,400 $ 1,032,400 $ 996,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 220 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Yoar 1 Year 2 Year 3 Variable costing net operating Income Add (deduct) foxed manufacturing overhead deferred in (released from) inventory under absorption 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 Inventories Year 3 Beginning (units) 200 170 180 Ending units) 170 Variable conting net operating income $ 1.080,400 $ 1,032,400 $ 196,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years 280 220 2. Assume in Year 4 that the company's variable costing net operating Income was $984,400 and its absorption costing net operating Income was $1,012,400. a. Did inventories increase or decrease during Year 42 Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from Inventory during Year 4? Fixed manufacturing overhead cost Inventory during your