Vishnu Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company usesvariable costing for internal management reports and absorption costing for external reports to shareholders, creditors,and the government. The company has provided the following data:InventoriesBeginning (units)Year 1220160$ 290,000Required:1. Calculate each year's absorption costing net operating income.Note: Enter any losses or deductions as a negative value.Variable costing net operating incomeAdd (deduct) fixed manufacturing overhead deferredin (released from) inventory under absorption costingAbsorption costing net operating incomeYear 2160190$ 269,000Ending (units)Variable costing net operating incomeThe company's fixed manufacturing overhead per unit was constant at $560 for all three years.Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesYear 1Year 2Year 3Year 3190230$ 250,000

Using variable costing, only variable manufacturing costs are included in the product costs. Using…

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) Year 1 220 160 $ 290,000 Year 2 Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. 160 190 $ 269,000 Year 3 190 230 $ 250,000 Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years.

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) Year 1 220 160 $ 290,000 Year 2 Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. 160 190 $ 269,000 Year 3 190 230 $ 250,000 Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 63P: Lavender Manufacturing Company began business in the current year. The company uses the simplified...

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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: 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 was constant at $560 for all three years. Required: 1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.)