Required information [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. The company has provided the following data: Year 1Year 2Year 3Inventories Beginning (units)210160190Ending (units)160190230Variable costing net operating income$290,000$269,000$260,000 The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.rev: 03_09_2019_QC_CS-162392 Required:1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.)

Absorption costing: It is one of the important costing methods of recording the cost of goods…

Answered: Required information [The following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Required information

[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. The company has provided the following data:

	Year 1	Year 2	Year 3
Inventories
Beginning (units)	210	160	190
Ending (units)	160	190	230
Variable costing net operating income	$290,000	$269,000	$260,000

The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.

rev: 03_09_2019_QC_CS-162392

Required:

1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.)

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