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Homework answers / question archive / Required information [The following information applies to the questions displayed below] Jorgansen Lighting, Inc

Required information [The following information applies to the questions displayed below] Jorgansen Lighting, Inc

Management

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: 
Inventories Year 1 Year 2 Year 3 Beginning (units) 220 160 200 Ending (units) 160 200 230 Variable costing net operating income $290,000 $279,000 $250,000 
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 $240,000 and its absorption costing net operating income was $290.000. 
a_ Did inventories increase or decrease during Year 4? 
Klavt S 
 

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