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) | 200 | 170 | 180 |
Ending (units) | 170 | 180 | 220 |
Variable costing net operating income | $ 1,080,400 | $ 1,032,400 | $ 996,400 |
The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.
2. Assume in Year 4 that the company’s variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400.
a. Did inventories increase or decrease during Year 4?
b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
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Exercise 7-3 (Static) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3]
Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1Year 2Year 3Inventories:Beginning (units)200170180Ending (units)170180220Variable costing net operating income$ 1,080,400$ 1,032,400$ 996,400 The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.
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) 200 170 180 Ending (units) 170 180 220 Variable costing net operating income $1,080,400 $1,032,400 $996,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Requirement 1:...
Required information [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) Ending (units) Variable costing net operating income 200 170 $1,080,400 170 180 $1,032,400 180 220 $996,400 The company's fixed manufacturing overhead per...
Exercise 6-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes Special instructions: Complete Exercise 6-3 in this document after the requirements list. You can create a table for the reconciliation report. Exhibit 6-4 provides an example that should help you complete the exercise. 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...
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) 220 150 190 Ending (units) 150 190 230 Variable costing net operating income $290,000 $269,000 $260,000 The company’s fixed manufacturing overhead per unit was constant at $570 for all three years. rev: 03_09_2019_QC_CS-162392...
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. Year 1 Year 2Year 3 Inventories Beginning (units)220 150 200 Ending (units)150 200 220 Variable costing net operating income $300,000 $269,000 $260,000 2. Assume in Year 4 that the company’s variable costing net operating income was $250,000 and its absorption costing net operating income was $270,000. a. Did inventories increase...
4. 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: Required information (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...
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) 200 170 190 Ending (units) 170 190 230 Variable costing net operating income $290,000 $279,000 $250,000 The company’s fixed manufacturing overhead per unit was constant at $570 for all three years. Exercise 6-3...
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) Ending (units) Variable costing net operating income 219 151 $295,500 151 188 $269,000 188 237 $258,500 The company's fixed manufacturing overhead per unit was constant at $569 for all three years. value: 2.00...
3. 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: Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.) Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses...