Required information Exercise 4-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO4-3] [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: Exercise 4-3 (Algo) Part 2 Inventories Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Year 1 Required a Year 2 Complete this question by entering your answers in the tabs below. Required b 150 200 150 190 $ 300,000 $ 279,000 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 $280,000. Did inventories increase or decrease during Year 4? Did inventories increase or decrease during Year 4? Year 3 a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? 190 240 $ 250,000
Required information Exercise 4-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO4-3] [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: Exercise 4-3 (Algo) Part 2 Inventories Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Year 1 Required a Year 2 Complete this question by entering your answers in the tabs below. Required b 150 200 150 190 $ 300,000 $ 279,000 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 $280,000. Did inventories increase or decrease during Year 4? Did inventories increase or decrease during Year 4? Year 3 a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? 190 240 $ 250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Exercise 4-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO4-3]
[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)
Ending (units)
Variable costing net operating income
Exercise 4-3 (Algo) Part 2
Year 1
The company's fixed manufacturing overhead per unit was constant at $550 for all three years.
Required a
Complete this question by entering your answers in the tabs below.
Required b
Year 2
150
200
150
190
$ 300,000 $ 279,000
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 $280,000.
Did inventories increase or decrease during Year 4?
Did inventories increase or decrease during Year 4?
a. Did inventories increase or decrease during Year 4?
b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
Required a
Year 3.
190
240
$ 250,000
Required b](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3a0202f-f091-448b-bf9b-266eeec70de0%2F1ef6e01d-1cd8-48d0-91c4-3b91ff0b4335%2F64coo19_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 4-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO4-3]
[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)
Ending (units)
Variable costing net operating income
Exercise 4-3 (Algo) Part 2
Year 1
The company's fixed manufacturing overhead per unit was constant at $550 for all three years.
Required a
Complete this question by entering your answers in the tabs below.
Required b
Year 2
150
200
150
190
$ 300,000 $ 279,000
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 $280,000.
Did inventories increase or decrease during Year 4?
Did inventories increase or decrease during Year 4?
a. Did inventories increase or decrease during Year 4?
b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
Required a
Year 3.
190
240
$ 250,000
Required b
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