3 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 first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $1,156,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,900 units) Variable expenses: Variable cost of goods sold $ 433,500 Variable selling and administrative 187,850 Contribution margin Fixed expenses: Fixed manufacturing overhead 287,100 Fixed selling and administrative 261,050 Net operating loss 621,350 534,650 548,150 $ 13,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as 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. w 3 argues that it absorption costing naa deen used ine company propady wouia nave reported at least some prorit tor 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: 31,900 28,900 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.20 $ 6.20 $ 1.60 $ 6.50 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 31,900 units but sold 34,900 units. (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? in a not for the 3 Check my w D. VITALIS LE LUI any > GUSUI PLIVIT CUSHY TIELOPCI GLITY IIICULE TUSS) TUI LIIC quarter: c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,900 units but sold 34,900 units. (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 1B Req 1c Reg 3A Req 3B Reg 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost KROG 1A Req 1B > Check my 3 Complete this question by entering your answers in the tabs below. Reo LA Reg 13 Reg 10 Reg 3A Req 3B Reg 3C What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss Check my wor 3 D. what is the company s absorpuon cosung net operaung income (IOSS) Tore 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 Req 10 Req 1C Req 3A Req 3B Reg 3C 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 (loss) Absorption costing net operating income (loss) Check my wor 3 Reg 1A Reg 1B Req 10 Req 3A Reg 3B Req 3C During the second quarter of operations, the company again produced 31,900 units but sold 34,900 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 0 Net operating income (loss) Check my work 3 Reg 1A Reg 1B Req 1C Reg 3A Req 3B Req 3C During the second quarter of operations, the company again produced 31,900 units but sold 34,900 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 0 Net operating income (loss) ELVICUTIUNI ULIYOIPUI 3 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Regic Reg 3A Reg 3B Reg 3C During the second quarter of operations, the company again produced 31,900 units but sold 34,900 units. Reconcile the variable 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 Variable costing net operating income (loss) Absorption costing net operating income (loss)