Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please do not give image format
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 $63 per unit and STI had sales of 24,400 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 27,200 units in 2022. STI is planning the same production level for 2022 as in 2021, 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. 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. Show Transcribed Text Less: Cost of goods sold 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 INCORPORATED Full Costing Income Statement 2021 Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Ĵ Operating income Ć 2022
Transcribed Image Text: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 $63 per unit and STI had sales of 24,400 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 27,200 units in 2022. STI is planning the same production level for 2022 as in 2021, 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. 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. Show Transcribed Text Less: Cost of goods sold 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 INCORPORATED Full Costing Income Statement 2021 Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Ĵ Operating income Ć 2022
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 $63 per unit and STI had sales of 24,400 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 27,200 units in 2022. STI is planning the same production level for 2022 as in 2021, 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. 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. Show Transcribed Text Less: Cost of goods sold 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 INCORPORATED Full Costing Income Statement 2021 Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Ĵ Operating income Ć 2022
Transcribed Image Text: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 $63 per unit and STI had sales of 24,400 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 27,200 units in 2022. STI is planning the same production level for 2022 as in 2021, 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. 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. Show Transcribed Text Less: Cost of goods sold 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 INCORPORATED Full Costing Income Statement 2021 Available for sale Cost of goods sold Gross margin Less: Selling and administrative costs Ĵ Operating income Ć 2022
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS