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 $47 per unit and had sales of 24,900 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 28,700 units in 2019. STI is planning the same production level for 2019 as in 2018, 26,800 units. The variable manufacturing costs for STI are $18, and the variable selling costs are only $0.90 per unit. The fixed manufacturing costs are $187,600 per year, and the fixed selling costs are $680 per year.

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 difference each year in the operating income resulting from the full and variable costing methods.

Need help with #2

Answer is not complete. Complete this question by entering 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 nea SECURITY TECHNOLOGY INC. Full Costing + ncome Statement 2018 2019 $ 1,170,300 $ 1,348,900 Sales Less: Cost of goods sold Beginning inventory Cost of goods produced $ 0 $ 47,500 670.000 670.000 Available for sale Less: Ending inventory 670,000 47.500 717,500 0 622.500 547.800 $ Cost of goods sold Gross margin Less: Selling and administrative costs Variable Fixed 717.500 631.400 $ 22,410 680 25,830 680 Operating income 23.090 524.710 $ 26,510 604.890 Required 2 Return to question Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year using variable costing. (Round your final answers to SECURITY TECHNOLOGY INC. Variable Costing Income Statement 2018 20 $ 1,170,300 Sales Less: Cost of goods sold Beginning inventory Variable $ 0 $ 482.400 34,200 516,600 Available for sale Less: Ending inventory 482.400 34,200 516,600 0 Cost of goods sold 448.200 516.600 Contribution margin Less: Fixed manufacturing costs $ 699.690 187.600 187.600 Less Selling and administrative costs Fixed 680 680 Pre Operating income 511 410 Return to question 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 $47 per unit and had sales of 24,900 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 28,700 units in 2019. STI is planning the same production level for 2019 as in 2018, 26,800 units. The variable manufacturing costs for STI are $18, and the variable selling costs are only $0.90 per unit. The fixed manufacturing costs are $187,600 per year, and the fixed selling costs are $680 per year. 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 difference each year in the operating income resulting from the full and variable costing methods. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a reconciliation of the difference each year in the operating income resulting from the t methods. (Negative amounts should be indicated by a minus sign. Do not round intermediate c overhead rate" answers to 2 decimal places, and other final answers to nearest whole dollar ar SECURITY TECHNOLOGY INC. Reconciling Difference in Operating Income Between Full and Variable Costing 2018 Change in inventory in units 1.900 Multiply times foed overhead rate 7.00 Difference in operating income $ 13,300 2019 (1.900) 7.00 (13.300) Regreda