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. The company provided the following data: Inventories Beginning (units) Year 1 Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Year 2 160 Ending (units) 210 160 180 Variable costing net operating income $ 300,000- $ 269,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 $ 300,000 $ 269,000 $ 250,000 Year 3 180 230 $ 250,000

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. The company provided the following data: The company's fixed manufacturing overhead per unit was constant at $570 for all three years. Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value