Business
Business, 23.10.2019 01:00, antoinewill05

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) 150 190 240 variable costing net operating income $290,000 $279,000 $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 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. did inventories increase or decrease during year 4?

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