Question

In: Accounting

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

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 $55 per unit and has sales of 24,000 units in the current yeard, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 26,000 units in 2019. STI is planning the same production level for 2019 as in 2018, 25000 units The variable manufacturing costs for STI are $16., and the variable selling costs are only $0.50 per unit. The fixed manufacturing costs are$200,000 per year and the fixed selling costs are $500 per year.

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.

Solutions

Expert Solution

2

3)


Related Solutions

Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture...
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 $56 per unit and had sales of 24,050 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 26,150 units in 2019. STI is planning the same production level for 2019 as in 2018, 25,100 units....
Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture...
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 $58 per unit and had sales of 24,150 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 26,450 units in 2019. STI is planning the same production level for 2019 as in 2018, 25,300 units....
Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture...
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 $44 per unit and had sales of 24,750 units in the current year, 2015. STI has no inventory on hand at the beginning of 2015 and is projecting sales of 28,250 units in 2016. STI is planning the same production level for 2016 as in 2015, 26,500 units....
Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture...
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 $61 per unit and had sales of 24,300 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 26,900 units in 2019. STI is planning the same production level for 2019 as in 2018, 25,600 units....
Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture...
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 $57 per unit and had sales of 24,100 units in the current year, 2018. STI has no inventory on hand at the beginning of 2018 and is projecting sales of 26,300 units in 2019. STI is planning the same production level for 2019 as in 2018, 25,200 units....
Doodads are a consumer electronic device. a. Assume there is an improvement in the technology used...
Doodads are a consumer electronic device. a. Assume there is an improvement in the technology used to produce doodads in 2015. What will change in the supply of doodads? What will change in the demand for doodads? What could be expected to happen to the equilibrium price and quantity in the market for doodads? Draw a graph (or graphs) and use it (them) to illustrate your answers. b. Now assume that at the same time as the technical improvement, there...
1. Give examples of security measures that might be used to control information security, personnel security,...
1. Give examples of security measures that might be used to control information security, personnel security, and health hazard security issues. 2. Should the federal and state governments enact tougher laws or regs to deal with security violators? If so, what are your recommendations?
in a short essay, describe chinas cyber security and the technology used.
in a short essay, describe chinas cyber security and the technology used.
Traditional system vs Technology today. Contract and compare the traditional system vs. the technology currently used...
Traditional system vs Technology today. Contract and compare the traditional system vs. the technology currently used in hospitals. What do you understand are the advantages and disadvantages of both? With what method would it be more comfortable to work and why? Indicate whether you agree with or differ from the opinions of your colleagues.
You are analyzing two companies that manufacture electronic toys—Like Games Inc. and Our Play Inc. Like...
You are analyzing two companies that manufacture electronic toys—Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $200,000 each. You’ve collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $510,000. As an analyst, you...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT