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: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 200 150 150 180 180 220 $ 290,000 $ 269,000 $ 260,000 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 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1 Year 2 Year 3 2 Part 2 of 2 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing m income was $310,000. a. Did inventories increase or decrease during Year 4? Ints eBook Increase Decrease Hint b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Print eferences Fixed manufacturing overhead cost inventory during Year 4 Part Assignment ( 2 and the govemment. The company has provided the following deta The company's fed manufacturing overhead 220 Quest 20 runt was constant at $550 for all three years. 2. Assume in that the company's varable coding net operating income we $250,000 and its absorption costing income was $310.000 a Did invertones increase or decreme during Wor 2 Decrease .: W 43 S x $ 55 % Prze 7 Next >