Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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

image text in transcribed

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 $46 per unit and had sales of 24,850 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 28,550 units in 2019. STI is planning the same production level for 2019 as in 2018, 26,700 units. The variable manufacturing costs for STI are $17, and the variable selling costs are only $0.80 per unit. The fixed manufacturing costs are $160,200 per year, and the fixed selling costs are $670 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. 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 nearest whole dollar amount.) SECURITY TECHNOLOGY INC. Full Costing Income Statement 2018 2019 Sales Less: Cost of goods sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions