Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $63 per unit and had sales of 24,400 units in the current year, 2015. STI has no inventory on hand at the beginning of 2015 and is projecting sales of 27,200 units in 2016. STI is planning the same production level for 2016 as in 2015, 25,800 units. The variable manufacturing costs for STI are $24 and the variable selling costs are only $0.60 per unit. The fixed manufacturing costs are $180,600 per year and the fixed selling costs are $580 per year.

Required:
1.

Prepare an income statement for each year using full costing. (Round your final answers to nearest whole dollar amount.)

Prepare an income statement for each year using variable costing. (Round your final answers to nearest whole dollar amount.)

Prepare a reconciliation and explanation of the difference each year in the operating income resulting from the full- and variable-costing methods. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your "Fixed overhead rate" answers to 2 decimal places, and other final answers to nearest whole dollar amount.)

if you need copies of the tables provided please advise; thanks

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

Auditing & Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

8th Edition

978-1260703733, 1260703738

More Books

Students also viewed these Accounting questions

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago

Question

Understand the purpose and methods of cross-cultural training

Answered: 1 week ago