I need help understanding this problem. 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 $55 per unit and STI had sales of 24,000 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 26,000 units in 2022. STI is planning the same production level for 2022 as in 2021, 25,000 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.

I would like help solving this problem with step by step work.

4 3. Prepare a reconciliation ofthe 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. 1.42 points Required 1 Required 2 Required 3 El Prepare an income statement for each year using full costing. 1,430,000 References Less: Cost of goods sold Beginning inventory Cost of goods produced Available for sale Less: Ending inventory 24,000 _- Cost of goods sold Gross margin Less: Selling and administrative costs Operating income Check my work 4 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1.42 points Prepare an income statement for each year using variable costing. SECURITY TECHNOLOGY INCORPORATED Variable Costing eBook Income Statement 2021 2022 Print Sales Less: Cost of goods sold Beginning inventory References Cost of goods produced Available for sale Less: Ending inventory Cost of goods sold Add: Variable selling and administrative Contribution margin Less: Fixed manufacturing costs Less: Selling and administrative costs Fixed Operating income 1.42 points References 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 $55 per unit and STI had sales of 24,000 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 26,000 units in 2022. STI is planning the same production level for 2022 as in 2021, 25,000 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. 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. Requ ed 1 Required 2 Required 3 Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods. (Negative amounts should be indicated by a minus sign.) Change in inventory in units Multiply times fixed overhead rate Difference in operating inoome Check my work