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Jorgansen Lighting, Incorporated, manufactures heavyduty 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
Year
$
Year
Year
Beginning units
Ending units
Variable costing net operating income
$
The company's fixed manufacturing overhead per unit was constant at $ for all three years.
Required:
Calculate each year's absorption costing net operating income. Enter any losses or deductions as a negative value.
tableReconciliation of Variable Costing and Absorption Costing Net Operating Incomes,,,Year Year Year Variable costing net operating income,,,,,,,tableAdd deduct fixed manufacturing overhead deferredin released from inventory under absorption costingAbsorption costing net operating income,,,,,,,
