Stultz Manufacturing has the following information for the years ended December 31, 2009, and December 31, 2010:

	2009	2010
Beginning inventory (units)	400	600
Selling price per unit	$90	$90
Units sold	1,000	1,900
Actual production (units)	1,200	1,500
Budgeted production (units)	1,200	1,500
Ending inventory (units)	600	200
Unit variable costs:
Manufacturing	$30	$30
Selling and administrative	$5	$5
Fixed costs:
Manufacturing	$24,000	$30,000
Selling and administrative	$10,000	$10,000

Required
1. Prepare the variable-cost and full-cost income statements for 2009 and 2010.
2. Prepare a reconciliation and explanation for the differences between full-cost and variable-cost operating income for bothyears.

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Required 1. Prepare the variable cost and full cost income statements for 2009 and 2010 2. Prepare a reconciliati on and explanati on for the differences between full cost and variable cost income for both years.