ACNT 2302 Hello I need help with the following question: [The following informat

Question

ACNT 2302

Hello I need help with the following question:

[The following information applies to the questions displayed below. Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalitles. 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 3 Inventories: 189 234 Variable costing net operating income $297,200 $272,500 $258,700 Beginning (units) Ending (units) 216 161 161 189 The company's fixed manufacturing overhead per unit was constant at $553 for all three years. value 16.66 points Required 1. Determine each year's absorption costing net operating income Reconciliation 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 0 $ 01$

Explanation / Answer

1) Reconciliation :

Year 1 Year 2 Year 3 Variable costing net operating income 297200 272500 258700 Add (Deduct) FIxed manufacturing overhead deferred in (released from) inventory under absorption costing (30415) 15484 24885 Absorption costing net operating income 266785 287984 283585

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