part 1

part 2

Required information The following information applies to the questions displayed below) Jorgansen Lighting, Inc, 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 2 Inventories Beginning (units) 210 Ending (units) Vaclable costing met operating Income $269,000 Year 1 Year 150 $250.000 150 180 16 20 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 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 Variable conting net operating income Add(deduct) faced manufacturing overhead deferred increased from) inventory under absorption costing Absorption costing net operating income Required information [The following information applies to the questions displayed below) Jorgansen Lighting, Inc, 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 Invertories Beginning (units) Ending units) Variable cesting net operating Income 210 150 $290,00 150 280 $269,000 180 230 $250,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operating Income was $260,000 a. Did inventories increase or decrease during Year 4? Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Foad menacting overhead cost Inventory Charing Year