Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE COMPLETE ALL PARTS!! Check my work 6 Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture of

PLEASE COMPLETE ALL PARTS!!

image text in transcribed

Check my work 6 Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture of certain special-duty auto transmissions used primarily for police and military applications. The part sells for $44 per unit and had sales of 24,750 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 28,250 units in 2019. STI is planning the same production level for 2019 as in 2018, 26,500 units. The variable manufacturing costs for STI are $15, and the variable selling costs are only $0.60 per unit. The fixed manufacturing costs are $238,500 per year, and the fixed selling costs are $650 per year 0.31 points Required: 1. Prepare an income statement for each year using full costing 2. Prepare an income statement for each year using variable costing. 3. Prepare a reconciliation of the dilfference each year in the operating income resulting from the full and variable costing methods. eBook Complete this question by e nterin g your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year using full costing. (Round your final answers to nearest whole dollar amount.) Full Costing Income Statement 2018 2019 Less: Cost of goods sold Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Operating income Required 1 Required 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Current Issues In Auditing Fraternity Modern Auditing And Auditors Issues

Authors: Nancy Myle

1st Edition

B0BCSDPYMD, 979-8849756974

More Books

Students also viewed these Accounting questions