2. 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 Inventories: Production (units) Sales (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was $18. 15,000 18,000 15,000 12,000 $320,000 $460,000 Required: Determine each year's absorption costing net operating income.

2. 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 Inventories: Production (units) Sales (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was $18. 15,000 18,000 15,000 12,000 $320,000 $460,000 Required: Determine each year's absorption costing net operating income.

Name: 2. Jorgansen Lighting, Inc., manufactures heavy-duty street lighting
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Description: 2. Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems formunicipalities. The company uses variable costing for internal management reports andabsorption costing for external reports to shareholders, creditors, and the governme

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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