Jay Requirea normationExercise 7-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3][The following information applies to the questions displayed below.]Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company usesvariable costing for internal management reports and absorption costing for external reports to shareholders, creditors,and the government. The company has provided the following data:InventoriesYear 1IncreaseO DecreaseBeginning (units)210170Ending (units)170190Variable costing net operating income$ 300,000$ 269,000The company's fixed manufacturing overhead per unit was constant at $560 for all three years.Year 2Fixed manufacturing overhead costYear 3Exercise 7-3 (Algo) Part 22. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operatingincome was $290,000.a. Did inventories increase or decrease during Year 4?inventory during Year 4.190230$ 250,000b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?A

Variable Costing Method is a method of costing in which product cost is calculated by adding direct…

Required information Exercise 7-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating In [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities_ variable costing for internal management reports and absorption costing for external reports to share and the government. The company has provided the following data: Inventories Beginning (units) Year 1 Increase Decrease 210 Ending (units) 170 Variable costing net operating income $ 300,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Year 2 Fixed manufacturing overhead cost Year 3 170 190 $ 269,000 Exercise 7-3 (Algo) Part 2 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorp income was $290,000. a. Did inventories increase or decrease during Year 4? inventory during Year 4 190 230 $ 250,000 b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?

Required information Exercise 7-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating In [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities_ variable costing for internal management reports and absorption costing for external reports to share and the government. The company has provided the following data: Inventories Beginning (units) Year 1 Increase Decrease 210 Ending (units) 170 Variable costing net operating income $ 300,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Year 2 Fixed manufacturing overhead cost Year 3 170 190 $ 269,000 Exercise 7-3 (Algo) Part 2 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorp income was $290,000. a. Did inventories increase or decrease during Year 4? inventory during Year 4 190 230 $ 250,000 b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?

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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Required information [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) Variable costing net operating income Year 1 Year 2 Year 3 210 160 160 190 190 240 $ 290,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Year 1 Year 2 Year 3 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory…
! Required information Exercise 7-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3] [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 Exercise 7-3 (Algo) Part 1 Year 1 Beginning (units) Ending (units) 150 190 Variable costing net operating income $ 269,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Year 2 200 150 $ 300,000 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Reconciliation of Variable Costing and Absorption Costing Net…
Required information [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) Variable costing net operating income Year 1 Year 2 Year 3 210 170 170 190 198 230 $ 300,000 $ 269,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing…
Required information [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) Variable costing net operating income Year 1 Year 2 Year 3 210 170 170 190 190 230 $ 300,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption…
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 200 160 180 160 180 230 $300,000 $269,000 $260,000 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 $250,000 and its absorption costing net operating income was $310,000. a. Did inventories increase or decrease during Year 4? O Increase O Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? inventory during Year 4 Fixed…
Required information [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: Year 1 Year 2 160 190 $ 279,000 O Increase O Decrease Year 3 Inventories. Beginning (units) Ending (units) 220 160 190 220 Variable costing net operating income i $ 290,000 $ 260,000 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 $260,000 and its absorption costing net operating Income was $300,000. 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? Fixed…
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) 210 160 190 Ending (units) 160 190 230 Variable costing net operating income $290,000 $269,000 $260,000 The company’s fixed manufacturing overhead per unit was constant at $560 for all three years. rev: 03_09_2019_QC_CS-162392 Required: 1. 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, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 220 150 150 180 180 240 $ 290,000 $ 279,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Required: 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1…
Required Information [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 Year 1 210 160 $ 300.000 Year 2 Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 160 190 $ 279.000 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 2 Year 1 Year 3 Required: 1. Calculate each year's absorption costing net operating Income. (Enter any losses…
Required information [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) Year 1 210 160 $ 300,000 Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 160 180 $ 279,000 Year 3 Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 180 220 $ 260,000 Required: 1. Calculate each year's absorption costing net operating…
[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) 220 170 190 Ending (units) 170 190 220 Variable costing net operating income $290,000 $279,000 $250,000 The company’s fixed manufacturing overhead per unit was constant at $400 for all three years. Required: 1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead…
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) 220 170 190 Ending (units) 170 190 220 Variable costing net operating income $290,000 $279,000 $250,000 The company’s fixed manufacturing overhead per unit was constant at $400 for all three years. 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 or decrease during Year 4? multiple choice Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from…