Check my work [The following information applies to the questions displayed belo

Question

Check my work [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. Ihe company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) 181 237 $291,100 274,000 $252,200 200 165 165 181 Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $563 for all three years. Required 1. Calculate each year's absorption costing net operating income. Present your answer in the form of a reconciliation report. (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 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income

Explanation / Answer

Year 1 Year 2 Year 3 Variable costing net operating income 291100 274000 252200 Add (deduct) fixed manufacturing overhead -19705 9008 31528 Absorption costing net operating income 271395 283008 283728

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