! 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: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 210 150 150 200 200 230 $ 300,000 $ 279,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 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. The company provided the following data: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 210 150 150 200 200 230 $ 300,000 $ 279,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1 Year 2 Year 3
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
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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. The company provided the following data:
Inventories
Beginning (units)
Ending (units)
Variable costing net operating income
Year 1
Year 2
Year 3
210
150
150
200
200
230
$ 300,000
$ 279,000
$ 250,000
The company's fixed manufacturing overhead per unit was constant at $570 for all three years.
Required:
1. Calculate each year's absorption costing net operating income.
Note: Enter any losses or deductions as a negative value.
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income
Add (deduct) fixed manufacturing overhead deferred in
(released from) inventory under absorption costing
Absorption costing net operating income
Year 1
Year 2
Year 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b3d57a9-b742-4844-8c4e-13137eb2a263%2F181bd085-bf72-4731-929b-398bbf0f3ddc%2F0bkfs6r_processed.png&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:
Inventories
Beginning (units)
Ending (units)
Variable costing net operating income
Year 1
Year 2
Year 3
210
150
150
200
200
230
$ 300,000
$ 279,000
$ 250,000
The company's fixed manufacturing overhead per unit was constant at $570 for all three years.
Required:
1. Calculate each year's absorption costing net operating income.
Note: Enter any losses or deductions as a negative value.
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income
Add (deduct) fixed manufacturing overhead deferred in
(released from) inventory under absorption costing
Absorption costing net operating income
Year 1
Year 2
Year 3
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