Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for...

	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.

value:
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Required:

1. Determine each year’s absorption costing net operating income.

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value:
10.00 points

Required information

2. In Year 4, the company’s variable costing net operating income was $247,700 and its absorption costing net operating income was $264,800.

a. Did inventories increase or decrease during Year 4?

	Increase
	Decrease

b. How much fixed manufacturing overhead cost was deferred in or released from inventory during Year 4?

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ekkarill92 answered 9 months ago

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