! 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: Inventories Year 1 O Increase O Decrease Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 210 160 $ 300,000 Fixed manufacturing overhead cost Year 2 Year 3 160 190 $ 279,000 2. Assume In Year 4 that the company's variable costing net operating Income was $250,000 and its absorption costing net operati Income was $300,000. a. Did Inventories Increase or decrease during Year 4? inventory during Year 4 190 240 $ 250.000 b. How much fixed manufacturing overhead cost was deferred or released from Inventory during Yes4?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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:
Inventories
Year 1
O Increase
O Decrease
Beginning (units)
Ending (units)
Variable costing net operating income
The company's fixed manufacturing overhead per unit was constant at $560 for all three years.
210
168
$ 300,000
Fixed manufacturing overhead cost
Year 2
Year 3
160
198
$ 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 $300,000.
a. Did Inventories Increase or decrease during Year 4?
inventory during Year 4
190
240
$ 250.000
b. How much fixed manufacturing overhead cost was deferred or released from inventory during Yel4?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fddbbd713-5520-497e-ba8f-299422b36439%2F69db2929-6ad9-4635-b438-e2ff8f699c1c%2Fwrlvuya_processed.jpeg&w=3840&q=75)
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