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 Year 1 Year 2 Inventories Beginning (units) 100 240 Ending (units) variable costing net operating income $ 250,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 220 160 $ 290,000 Vanable costing net operating income Add (deduct) fixed manufacturing overhead defened in released from) inventory under absorption costing Absorption costing net operating income 160 100 $ 279,000 Year 3 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3
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 Year 1 Year 2 Inventories Beginning (units) 100 240 Ending (units) variable costing net operating income $ 250,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 220 160 $ 290,000 Vanable costing net operating income Add (deduct) fixed manufacturing overhead defened in released from) inventory under absorption costing Absorption costing net operating income 160 100 $ 279,000 Year 3 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Year 1
Year 2
Inventories
Beginning (units)
180
Ending (units)
220
160
240
variable costing net operating income
$ 290,000
$ 250,000
The company's fixed manufacturing overhead per unit was constant at $550 for all three years
Variable costing net operating income
Adu-deduct) fixed manufacturing overhead deferred
in (released from) inventory under absorption costing
Absorption costing net operating income
160
180
$ 279,000
Required:
1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Year 1
Year 2
Year 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea366306-f9a6-4b98-a79b-f328d41f4057%2F2b6c2253-c713-4e9a-8722-15473c64ddfe%2Fb9212w7_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
Year 1
Year 2
Inventories
Beginning (units)
180
Ending (units)
220
160
240
variable costing net operating income
$ 290,000
$ 250,000
The company's fixed manufacturing overhead per unit was constant at $550 for all three years
Variable costing net operating income
Adu-deduct) fixed manufacturing overhead deferred
in (released from) inventory under absorption costing
Absorption costing net operating income
160
180
$ 279,000
Required:
1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Year 1
Year 2
Year 3
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