Check 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 Toni's Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,500 units) Variable expensest $ 1,140,000 Variable cost of goods sold $ 487, 350 Varioble selling and administrative 106,650 684,000 Contribution margin 456,000 Fixed expenses Fixed manufacturing overhead 283,500 Fixed selling and administrative 186,000 460, 500 Net operating loss 3. 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 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 31,500 Units sold 23,500 Variable costs per unit: $ 7.40 Direct materials TIC VOLVOYEU UCHUMI NE VUOICI. POLOVICHY VELOUCHOU MOENICU W UCH SE SUPPO 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 31,500 Units sold 28,500 Variable costs per unit: Direct materials $ 7.40 Direct labor $ 7.70 Variable manufacturing overhead $ 2.00 Variable selling and administrative $6.90 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 31500 units but sold 34.500 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 foss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,500 units but sold 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 a Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 1C Req Req 3B Req 30 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Reg 1B > c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,500 units but sold 34,500 units. 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 1A Reg 1B Req 1C Reg Req 3B Req 30 What is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate ca to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Total Net operating income (loss) c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,500 units but sold 34,500 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. Req 1A Reg 1B Reg 1C Reg 3A Reg 38 Req3 Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions should be antored 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) ( Req 16 Req3A > c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,500 units but sold 34,500 units. 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 1A Reg 1B Req 10 Req Req 3B Reg 3C During the second quarter of operations, the company again produced 31,500 units but sold 34,500 units. What is company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement