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! Required information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., 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 7-3 Part 1 Year 1 210 170 $290,000 Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 170 180 $269,000 The company's fixed manufacturing overhead per unit was constant at $400 for all three years. Year 3 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 180 230 $260,000 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)

! Required information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., 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 7-3 Part 1 Year 1 210 170 $290,000 Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 170 180 $269,000 The company's fixed manufacturing overhead per unit was constant at $400 for all three years. Year 3 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 180 230 $260,000 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! Required information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., 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 7-3 Part 1 Year 1 210 170 $290,000 Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 170 180 $269,000 The company's fixed manufacturing overhead per unit was constant at $400 for all three years. Year 3 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 180 230 $260,000 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)
Transcribed Image Text:! Required information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., 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 7-3 Part 1 Year 1 210 170 $290,000 Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 170 180 $269,000 The company's fixed manufacturing overhead per unit was constant at $400 for all three years. Year 3 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 180 230 $260,000 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)
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