stions dis 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. The company provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) 170 220 170 200 Variable costing net operating income $ 290,000 $ 279,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 200 230 $ 250,000 2. Assume in Year 4 the company's variable costing net operating income was $260,000 and its absorption costing net operating income was $310,000. 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?
stions dis 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. The company provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) 170 220 170 200 Variable costing net operating income $ 290,000 $ 279,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 200 230 $ 250,000 2. Assume in Year 4 the company's variable costing net operating income was $260,000 and its absorption costing net operating income was $310,000. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answer in text form please (without image)
![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. The company provided the following data:
Year 1
Inventories
Beginning (units)
Ending (units)
220
170
Variable costing net operating income
$ 290,000
The company's fixed manufacturing overhead per unit was constant at $570 for all three years.
Complete this question by entering your answers in the tabs below.
Required 2a
Year 2
170
200
$ 279,000
2. Assume in Year 4 the company's variable costing net operating income was $260,000 and its absorption costing net
operating income was $310,000.
Required 2b
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?
Did inventories increase or decrease during Year 4?
Did inventories increase or decrease during Year 4?
Year 3
200
230
$ 250,000
Required 2b](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf666dae-56c2-4f27-bcf5-8ada7b6cbe6e%2F580be552-790b-4ab4-bb32-19f2af9bb82d%2Fv4efv85_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. The company provided the following data:
Year 1
Inventories
Beginning (units)
Ending (units)
220
170
Variable costing net operating income
$ 290,000
The company's fixed manufacturing overhead per unit was constant at $570 for all three years.
Complete this question by entering your answers in the tabs below.
Required 2a
Year 2
170
200
$ 279,000
2. Assume in Year 4 the company's variable costing net operating income was $260,000 and its absorption costing net
operating income was $310,000.
Required 2b
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?
Did inventories increase or decrease during Year 4?
Did inventories increase or decrease during Year 4?
Year 3
200
230
$ 250,000
Required 2b
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education