Required Information Part 1 of 2 The followng Information ap

Required Information Part 1 of 2 The followng Information applies to the questions displayed below] Jorgansen Lighting. Inc, 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 5 points Year 1Year 2Year 3 Inventories Beginning (units) Ending (units) 218 166 $3ee , ??? 16e 200 $279 , eee 2ee 228 $250,eee eBook Variable costing net operating income The company\'s fixed manufacturing overhead per unit was constant at $560 for all three years. Hint PntRqulred: 1 Calculate each years absorption costing net operating income. (Enter any losses or deductions as a negetive value.) Reterences Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Vanable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released fromj inventory under absorption costing Absorption costing net operating incomae

Solution

Year1 Year 2 Year 3 Net operating income variable costing 300000 279000 250000 Ending inventory Fixed manufacturing -28000 22400 11200 Net operating income absorption costing 272000 301400 261200 Ending inventory Fixed manufacturing Beginning Inventory 210 160 200 Ending inventory 160 200 220 Difference -50 40 20 Manufacturing overhead cost per unit 560 560 560 Fixed manufacturing overheads deffered   -28000 22400 11200