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[The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting...

[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) 210 170 200 Ending (units) 170 200 240 Variable costing net operating income $290,000 $269,000 $260,000 The company’s fixed manufacturing overhead per unit was constant at $550 for all three years.

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B D 1 Year 1 Year 2 290000 Year 3 269000 260000 2 Variable costing net income Add(deduct) fixed manufacturing overhead deferr

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