Required information Exercise 6-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] (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 to shareholders, creditors, and the government. The company has provided the following data Inventories Beginning (units) Ending (units) 190 230 Variable costing net operating income $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 200 170 170 190 $ 200,000 $ 269,000 O Increase O Decrease Year 3 Exercise 6-3 (Algo) Part 2 2. Assume in Year 4 that the company's 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? b How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fleed manufacturing overhead cost vectory during Year A
Required information Exercise 6-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] (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 to shareholders, creditors, and the government. The company has provided the following data Inventories Beginning (units) Ending (units) 190 230 Variable costing net operating income $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 200 170 170 190 $ 200,000 $ 269,000 O Increase O Decrease Year 3 Exercise 6-3 (Algo) Part 2 2. Assume in Year 4 that the company's 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? b How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fleed manufacturing overhead cost vectory during Year A
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter19: Variable Costing (varcost)
Section: Chapter Questions
Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...
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