Question
In: Accounting
Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty...
Required information
[The following 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:
| Year 1 | Year 2 | Year 3 | |
| Inventories | |||
| Beginning (units) | 220 | 160 | 200 |
| Ending (units) | 160 | 200 | 220 |
| Variable costing net operating income | $300,000 | $279,000 | $250,000 |
The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.
rev: 03_09_2019_QC_CS-162392
2. Assume in Year 4 that the company’s variable costing net operating income was $250,000 and its absorption costing net operating income was $310,000.
a. Did inventories increase or decrease during Year 4?
-
Increase
-
Decrease
b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty...
Required information [The following 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:
Year 1 Year 2 Year 3 Inventories Beginning (units) 220 170 180
Ending (units) 170 180 220 Variable costing net operating income
$300,000 $279,000 $250,000 The company’s fixed manufacturing
overhead per...
Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty...
Required information
[The following 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:
Year 1
Year 2
Year 3
Inventories
Beginning (units)
220
160
190
Ending (units)
160
190
220
Variable costing net operating income
$300,000
$279,000
$260,000
The company’s fixed manufacturing overhead per...
[The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting...
[The following 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:
Year 1
Year 2
Year 3
Inventories:
Beginning (units)
200
170
180
Ending (units)
170
180
220
Variable costing net operating income
$1,080,400
$1,032,400
$996,400
The company’s fixed manufacturing overhead per unit...
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities.
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:
Year 1
Year 2
Year 3
Inventories:
Beginning (units)
217
166
193
Ending (units)
166
193
234
Variable costing net operating income
$295,000
$275,500
$259,500
The company’s fixed manufacturing overhead per unit was constant at $555 for...
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...
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: Year 1 Year 2 Year 3
Inventories Beginning (units) 220 160 200 Ending (units) 160 200
220 Variable costing net operating income $290,000 $269,000
$260,000 The company’s fixed manufacturing overhead per unit was
constant at $500 for all three years. Required: 1....
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...
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:
Year 1
Year 2
Year 3
Inventories
Beginning (units)
210
160
200
Ending (units)
160
200
220
Variable costing net operating income
$290,000
$279,000
$260,000
The company’s fixed manufacturing overhead per unit was constant
at $560 for all three years.
Required:
1....
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...
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:
Year 1
Year 2
Year 3
Inventories:
Beginning (units)
210
151
197
Ending (units)
151
197
228
Variable costing net
operating income
$294,000
$277,400
$256,100
The company’s fixed manufacturing overhead per...
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...
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:
Year 1
Year 2
Year 3
Inventories:
Beginning (units)
214
162
197
Ending (units)
162
197
239
Variable costing net operating
income
$298,600
$276,500
$258,700
The company’s fixed manufacturing overhead per unit was constant
at $569 for all three years.
3.
value:...
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...
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:
Year 1 year 2 year 3
Inventories:
Beginning (units) 210 160 180
Ending (units) 160 180 230
Variable costing net
operating income $290,000, $279,000 $250,000
The company's fixed manufacturing overhead per unit was constant at
$560 for all three years.
Requirement 1:...
Required information [The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture...
Required information
[The following information applies to the questions
displayed below.]
Iguana, Inc., manufactures bamboo picture frames that sell for $30
each. Each frame requires 4 linear feet of bamboo, which costs
$2.50 per foot. Each frame takes approximately 30 minutes to build,
and the labor rate averages $12 per hour. Iguana has the following
inventory policies:
Ending finished goods inventory should be 40 percent of next
month’s sales.
Ending direct materials inventory should be 30 percent of next
month’s...
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