Security Technology Incorporated (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 $41 per unit and STI had sales of 24,600 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 27,800 units in 2022. STI is planning the same production level for 2022 as in 2021, 26,200 units. The variable manufacturing costs for STI are $12, and the variable selling costs are only $0.30 per unit. The fixed manufacturing costs are $157,200 per year, and the fixed selling costs are $620 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 SECURITY TECHNOLOGY INCORPORATED Full Costing Income Statement 2021 $ 1,008,600 Sales Less: Cost of goods sold Beginning inventory 0 Cost of goods produced (442,800) 2022 $ 1,139,800 $ 28,800 (500,400) Required 1 Required 2 Required 3 Prepare an income statement for each year using full costing. (Round your final answers to nearest SECURITY TECHNOLOGY INCORPORATED Full Costing Income Statement 2021 $ 1,008,600 Sales Less: Cost of goods sold Beginning inventory $ Cost of goods produced (442,800) Available for sale Less: Ending inventory Cost of goods sold Gross margin Less: Selling and administrative costs Variable Fixed Operating income (28,800) 2022 $ 1,139,800 $ 28,800 (500,400) Required Required 2 > Required 1 Required 2 Required 3 Prepare an income statement for each year using variable costing. (Round your final answers to nearest SECURITY TECHNOLOGY INCORPORATED Sales Less: Cost of goods sold Beginning inventory Cost of goods produced Variable selling and administrative Available for sale Less: Variable selling and administrative Less: Fixed manufacturing costs Cost of goods sold Contribution margin Add: Fixed manufacturing costs Less: Selling and administrative costs Fixed manufacturing costs Variable Costing Income Statement 2021 2022 $ 1,008,600 1,1 295,200 7,380 333,600 8,340 (620) (620) (157,200) (157,200) + 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 fu and variable costing methods. 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 full and methods. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculatio overhead rate" answers to 2 decimal places, and other final answers to nearest whole dollar amount.) SECURITY TECHNOLOGY INCORPORATED Reconciling Difference in Operating Income Between Full and Variable Costing Change in inventory in units Multiply times fixed overhead rate $ $ Difference in operating income 2021 548,200 2022 640,040 9,600.00 $ (9,600.00) $ 5,262,720,000 (6,144,384,000) < Required 2 < Prev 36 of 36 Next > www Required 3