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Required information

Exercise $6-3($Algo$)$ Reconciliation of Absorption and Variable Costing Net Operating Incomes $[$LO$6-3]$

$[$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:

$\backslash$table$[[$Inventories$,$Year $1,$Year $2,$Year $3],[$Beginning $($units$),220,160,180],[$Ending $($units$),160,180,230],[$Variable costing net operating income,$$300,000,$$$269,000,$$$260,000$