HW Chapter 7 Saved Help Save & Exit Submit Check my work 3 Required information Part 1 of 2 [The following information applies to the questions displayed below.] 16.66 Jorgansen Lighting, Incorporated, manufactures heavy-duty points street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, eBook creditors, and the government. The company has provided the following data: Hint Year 1 Year 2 Year 3 Print Inventories Beginning (units) 200 150 180 References Ending (units) 150 180 230 Variable costing net operating income $ 290, 000 $ 279,000 $ 260,000 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. (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 Mc Graw Hill