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.]

	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?

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ekkarill92 answered 1 year ago

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