2 Required Information Part 1 of 2 [The following information applies to the que

Question

2 Required Information Part 1 of 2 [The following information applies to the questions displayed below.j Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses varlable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: points Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) 180 220 $290,000 269,000 260,000 220 150 150 180 eBook Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Hint Print Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negatlve value.) References Reconciliation of Variable Costing and Costing Net Operating Incomes Year 1 Year 2 Year 3 ariable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption Absorption costing net operating income

Explanation / Answer

Calculate absorption costing net operating income :

Year 1 Year 2 Year 3 Variable costing net operating income 290000 269000 260000 Add (deduct) Fixed manufacturing overhead deferred in (released from) inventory under absorption costing -39200 16800 22400 Absorption costing net operating income 250800 285800 282400

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