Required information[The following information applies to the questions displayed below.]Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company usesvariable costing for internal management reports and absorption costing for external reports to shareholders, creditors,and the government. The company has provided the following data:InventoriesBeginning (units)Year 1Year 2210150Ending (units)Variable costing net operating income$ 300,000The company's fixed manufacturing overhead per unit was constant at $560 for all three years.Variable costing net operating incomeAdd (deduct) fixed manufacturing overhead deferredin (released from) inventory under absorption costingAbsorption costing net operating income150190$ 279,000Year 3Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesYear 1Year 2Year 3Required:1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.)190230$ 250,000

Absorption costing: Absorption costing is a method in which cost of units produced is calculated as…

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 2 Year 3 Year 1 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income

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 2 Year 3 Year 1 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 3CMA: Young Company is beginning operations and is considering three alternatives to allocate...

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