Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Security Technology Incorporated (STi) is a manufacturer of an electronic control system used in the manufacture of certain specialduty auto transmissions used primarily for police

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Security Technology Incorporated (STi) is a manufacturer of an electronic control system used in the manufacture of certain specialduty auto transmissions used primarily for police and military applications. The part sells for $48 per unit and STI had sales of 24,950 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 28,850 units in 2022 . STI is planning the same production level for 2022 as in 2021,26,900 units. The varlable manufacturing costs for STI are $19, and the variable selling costs are only $0.30 per unit. The fixed manufacturing costs are $215,200 per year, and the fixed selling costs are $690 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. 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 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.) 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. Prepare a reconciliation of the difference each year in the operating income resulting from the full and Jariable 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.)

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

50 + Fun Financial Accounting Cases

Authors: Thomas E. McKee

1st Edition

1257824538, 978-1257824533

More Books

Students also viewed these Accounting questions

Question

Explain basic guidelines for effective multicultural communication.

Answered: 1 week ago

Question

Identify communication barriers and describe ways to remove them.

Answered: 1 week ago

Question

Explain the communication process.

Answered: 1 week ago