Check my work Tami Tyler opened Tami's Creations, Incorporated, 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 Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,100 units) $ 1,124, eee Variable expenses: Variable cost of goods sold $ 424, 310 Variable selling and administrative 171,410 595,72e Contribution margin 528,280 Fixed expenses: Fixed manufacturing overhead 279,9ee Fixed selling and administrative 261,880 541,780 $ 13,500) Net operating loss 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 31,100 28,100 Units produced Units sold Variable costs per unit: Direct materials Direct labor $ 7.2e $6.20 8 07 te to search home G pots 16 Help Save & Exit Check my Direct labor Variable manufacturing overhead Variable selling and administrative $6.20 $ 1.70 $ 6.10 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 31100 units but sold 34,100 units. (Assume no change in tot 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 3 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Ret 1 Req 18 > 607 here to search Seved Help Save & Ex Submit Check my work Ieu LUSS 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 foss) 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 3 Req 1A Reg 1B Req 1C Req 35 Reg 30 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, Incorporated Absorption Costing Income Statement Total Net operating income foss) ere to search prese va Saved Help Save & Chi XEU LUSLS.) 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 1A Req 1B Req 1C Reg 3A Req 3B Req 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) Next > 8 of 11 Mc Graw Hill II ype here to search prese home 101P Save & CH Reg 1A Reg 1B Req 1C Req Reg 3B BE Req 30 During the second quarter of operations, the company again produced 31,100 units but sold 34,100 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, Incorporated Absorption Costing Income Statement Total 0 Net operating income (loss) Next