[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 to shareholders, creditors, and the government. The company has provided the following data: Inventories Year 1 Year 2 Year 3 Beginning (units) 210 170 Ending (units) Variable costing net operating income $ 290,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 170 200 $ 279,000 200 240 $ 260,000

[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 to shareholders, creditors, and the government. The company has provided the following data: Inventories Year 1 Year 2 Year 3 Beginning (units) 210 170 Ending (units) Variable costing net operating income $ 290,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. 170 200 $ 279,000 200 240 $ 260,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 6CE: Pinter Company had the following environmental activities and product information: 1. Environmental...

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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.)
[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) 220 170 190 Ending (units) 170 190 220 Variable costing net operating income $290,000 $279,000 $250,000 The company’s fixed manufacturing overhead per unit was constant at $400 for all three years. 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 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead…
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) 220 170 190 Ending (units) 170 190 220 Variable costing net operating income $290,000 $279,000 $250,000 The company’s fixed manufacturing overhead per unit was constant at $400 for all three years. 2. Assume in Year 4 that the company’s variable costing net operating income was $250,000 and its absorption costing net operating income was $270,000. a. Did inventories increase or decrease during Year 4? multiple choice Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from…
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 toshareholders, creditors, and the government. The company has provided the following data:Year 1 Year 2 Year 3Inventories:Beginning (units) .................................. 200 170 180Ending (units) ....................................... 170 180 220Variable costing net operating income .... $1,080,400 $1,032,400 $996,400The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.Required:1. Determine each year’s absorption costing net operating income. Present your answer in the form of areconciliation report as shown in Exhibit 5A–4.2. In Year 4, the company’s variable costing net operating income was $984,400 and its absorption costingnet operating income was $1,012,400. Did inventories increase or decrease during Year 4? How muchfixed…