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a. Compute the Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first

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a. Compute the 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. 30 points Tami's Creations, Inc. Income Statement Sales (28,200 units the Quarter Ended March 31 $1,128,000 Variable expenses: eBook Variable cost of goods sold $ 487,860 References Variable selling and administrative 188,940 676,800 Contribution margin 451,200 Fixed expenses: Fixed manufacturing overhead 249,600 Fixed selling and administrative 213,600 463,200 Net operating loss $ 12,890) 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. 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: Units produced 31,200 Units sold 28,200 Variable costs per unit: Direct materials $ 7.20 Direct labor $ 8.10 Variable manufacturing overhead $ 2.00 Variable selling and administrative $ 6.70 1 Required: 1. Complete the following: b. t is the company's absorption costing net operating income (loss) for the quarter? 30 c. Reconcile the variable and absorption costing net operating income (loss) figures. points 3. During the second quarter of operations, the company again produced 31,200 units but sold 34,200 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? eBook b. What is the company's absorption costing net operating income (loss) for the second quarter? References 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 10 Reg 1c Req 3A Reg 36 Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) . Unit product cost eBook What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) References Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) 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) During the second quarter of operations, the company again produced 31,200 units but sold 34,200 units. What is the company's variable costing net operating income (loss) for the second quarter? 30 points Tami's Creations, Inc. Variable Costing Income Statement Book References Net operating income (loss) During the second quarter of operations, the company again produced 31,200 units but sold 34,200 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) During the second quarter of operations, the company again produced 31,200 units but sold 34,200 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)

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