Please help me answer these 2 questions before 11:59pm tonight. If you could explain how you do it because I don't understand these questions at all, thank you so much!

1) 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:

	Year 1	Year 2	Year 3
Inventories
Beginning (units)	210	160	190
Ending (units)	160	190	230
Variable costing net operating income	$ 300,000	$ 269,000	$ 260,000

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

Assume in Year 4 that the companys variable costing net operating income was $260,000 and its absorption costing net operating income was $290,000.

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 inventory during Year 4?

2) Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products follow:

	Product
	Weedban	Greengrow
Selling price per unit	$ 9.00	$ 39.00
Variable expenses per unit	$ 2.70	$ 11.00
Traceable fixed expenses per year	$ 130,000	$ 46,000

Last year the company produced and sold 35,500 units of Weedban and 19,500 units of Greengrow. Its annual common fixed expenses are $99,000.

a) Prepare a contribution format income statement segmented by product lines.

***************************** Total company, Weedban, Greengrow

_________________ ______ _____ ______

________________ _______ _______ ______

_________ 0 0 0

_____________ _______ _______ ______

__________ 0 $0 $0

____________ ________

__________ $0