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Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, 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: Inventories Beginning (units) Increase Decrease Year 1 Year 2 160 200 $ 269,000 Ending (units) 200 160 Variable costing net operating income $ 300,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 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 $290,000. a. Did inventories increase or decrease during Year 4? Fixed manufacturing overhead cost X Answer is complete but not entirely correct. inventory during Year 4 deferred in b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Year 3 200 220 $ 250,000 $ 570 x

[The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, 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: The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 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 $290,000. 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 ? Answer is complete but not entirely correct

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