Inventories Year 1 year 2 year 3
Beginning INV. 180 150 160
Ending INV. 150 160 200
Variable costing net oper. Income $292,400 $269,200 $251,800
Fixed manufacturing overhead per unit was constant at $450 for all3 years.
Determine each year's absorption costing net operating income
In year 4 the company's variable costing net operating incomewas $240.200 and its absorption costing net income was $267,200 did the inventory increase or decrease during yr 4 and how much Fixedmanufacturing overhead cost was deferred or released from inventoryduring yr 4.