Security Technology Inc. (STI) is a manufacturer of anelectronic control system used in the...

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Accounting

Security Technology Inc. (STI) is a manufacturer of anelectronic control system used in the manufacture of certainspecial-duty auto transmissions used primarily for police andmilitary applications. The part sells for $61 per unit and hadsales of 24,300 units in the current year, 2018. STI has noinventory on hand at the beginning of 2018 and is projecting salesof 26,900 units in 2019. STI is planning the same production levelfor 2019 as in 2018, 25,600 units. The variable manufacturing costsfor STI are $22, and the variable selling costs are only $0.40 perunit. The fixed manufacturing costs are $128,000 per year, and thefixed selling costs are $560 per year.
Required: 1. Prepare an income statement for each year usingfull costing. 2. Prepare an income statement for each year usingvariable costing. 3. Prepare a reconciliation of the differenceeach year in the operating income resulting from the full andvariable costing methods.
PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!

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In: AccountingSecurity Technology Inc. (STI) is a manufacturer of anelectronic control system used in the manufacture...Security Technology Inc. (STI) is a manufacturer of anelectronic control system used in the manufacture of certainspecial-duty auto transmissions used primarily for police andmilitary applications. The part sells for $61 per unit and hadsales of 24,300 units in the current year, 2018. STI has noinventory on hand at the beginning of 2018 and is projecting salesof 26,900 units in 2019. STI is planning the same production levelfor 2019 as in 2018, 25,600 units. The variable manufacturing costsfor STI are $22, and the variable selling costs are only $0.40 perunit. The fixed manufacturing costs are $128,000 per year, and thefixed selling costs are $560 per year.Required: 1. Prepare an income statement for each year usingfull costing. 2. Prepare an income statement for each year usingvariable costing. 3. Prepare a reconciliation of the differenceeach year in the operating income resulting from the full andvariable costing methods.PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!