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) 200 180 Ending (units) 170 Variable costing net operating income $ 1,080,400 $ 1,032,480 $ 996,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years 170 180 228 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 Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fooed 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: 180 Year 1 Year 2 Inventories: Year 3 Beginning (units) 200 170 Ending (units) 170 180 220 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 - Assume in Year 4 that the company's variable costing net operating income was $984,400 and its absorption costing net operating ncome was $1,012,400 Did inventories increase or decrease during Year 4? Increase Decrease How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?! Fred manufacturing overhead con Inventory ng Your