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Required Informetlon The following Information applies to the questions displayed below Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municlpalities. The company uses variable
Required Informetlon The following Information applies to the questions displayed below Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municlpalities. 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 ear ear Inventories Beginning (units) Ending (units) 200 170 $1,080, 400 170 180 $1, 032, 400 180 220 $996, 400 Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Requlrec 1. Calculate each year's absorption costing net operating Income. (Enter any losses or deductions as a negatlve value.) conciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income
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