pt 1:2

Required information The following information applies to the questions displayed below) 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: 16 Year 1 Year You Inventory Beginning (units) 300 1920 Ending (unit) 100 100 20 Variable costit net operating Income $.290,000 $12.9,000 5.250.000 The company's fixed manufacturing overhead per unit was constant at $50 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 inermes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deforred in (roloased from) inventory under absorption costing Absorption costing net operating income The following information applies to the questions displayed below) Jorgansen Lighung. Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for interal management reports and absorption costing for external reports to shareholders, creditors, and the govemment. The company has provided the following data Year 1 Year 2 Inventories Beginning (units) Ending units) Variable costing net operating incon 200 160 $ 290,000 160 190 $ 269,000 190 23e 250.000 The company's fixed manufacturing overhead per unit was constant at 5570 for 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 $290,000 a. Did inventories increase or decreasedur Year 42 Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from Inventory during Year 4? Fixed manufacturing overhead cost ventory during Year 4