Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The...
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Accounting
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)
217
165
193
Ending (units)
165
193
239
Variable costing net operating income
$296,700
$276,100
$254,700
The companys fixed manufacturing overhead per unit was constant at $570 for all three years.
3.
value: 3.75 points
Required information
Required:
1.
Determine each years absorption costing net operating income.
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