1 Tami Tyler opened Tami's Creations, Inc, a small manufacturing company at the beginning of the year Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the fint quarter was prepared by a friend who has just completed a course in managerial accounting at State University $1,150.000 Creats, The State For the tide archi Sales (28.900 Vente et Variable coat of goods sold 43.320 Varble selling and wastave 202.600 Contribution Fixed expenses Fixed coverhead 254.400 Yixding and RI 21 Het operating to 366. 510.00 12,000) Ms. Tyler is discouraged over the loss shown for the quarter particularly because she had planned to use the statements support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point Ms Tyler is manufacturing only one product a swimsuit Production and cost data relating to the swimsuit for the first quarter follow 20.100 ste produced niste od Variable per Det material Direct Imber Variable in thead Variable saling diteta 7.80 1.10 1.10 Required: 1 Complete the following a Compute the unit product cost under ab option costing b. What is the company's absorption costing net operating income foss) for the quarter? Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31800 units but sold 34 800 units. Assume no change in total red costs) a What is the company's variable costing net operating income foss) for the second quarter? What is the company's absorption costing net operating income foss) for the second quarter Reconcile the variable costing and absorption costing net operating incomes for the second quarter & Prev Next > cost data relating to the swimsuit 31,800 28.800 Units produced Onits old Variable costs per unitt Direet materials Direct labor Variable manufacturing overhead Variable selling and administracire $ 7.60 $6.10 $1.70 52.00 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. (Assume ne total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Complete this question by entering your answers in the tabs below. Req IA Reg 1B Reg IC Reg 3A Reg 39 Rea 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product COB $ 8.00 Req 18 > SUIVE 87.00 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (lossy figures. 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,200 urats. Assume no change in total fixed costs) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 1C Req 3A Reg 38 Reg 3C What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculation to 2 decimal places.) Tami's Creations, Inc. Absorption Coating Income Statement Total 0 Net operating income (loss) - 800 doute per unit: Direa materials Direct labor Variable tinutacturing overhead Variable selling and administrative 7.60 $6.10 51.70 $7.00 Required: 1. Complete the following: a Compute the unit product cost under absorption costing b. What is the company's absorption costing net operating income (loss) for the quarter? Reconcile the variable and absorption costing net operating income (loss) figures 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. (Assume noc total fixed costs) a What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c Reconcile the variable costing and absorption costing net operating incomes for the second quarter, Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1C Reg 3A Reg 38 Reg 30 Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income foss) Absorption costing net operating income (oss! a. What is the company's variable costing net operating income foss) for the second quarter? 6 What is the company's absorption costing net operating income (loss) for the second quarter? Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Complete this question by entering your answers in the tabs below. Req. IA Reg 1B Reg 1 Reg 3A Reg 38 Reg 36 During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable Costing Income Statement 0 0 Net operating income (loss) What is the company's absorption costing net operating income (oss) for the quarter? c. Reconcile the variable and absorption costing het operating income foss) figures. 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. (Assume nc total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? 6. What is the company's absorption costing net operating income (loss) for the second quarter? d. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Reg Reg ze Reg 3B Req3c During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) ( Req3A Req 30 > Variable selling and administrative ER 1.20 $ 2.00 Required: 1 Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income foss) figures. 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. (Assume no di total fixed costs) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter Complete this question by entering your answers in the tabs below. Req IA Reg 1B Req 1C Reg 3A Req 38 Reg 30 During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. Reconcile the vanable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Vanable costing net operating income (loss) Absorption costing net operating income (loss)