es 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. Sales (28,700 units) Variable expenses: Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss $ 462,070 175,070 285,300 239,060 $ 1,148,000 637,140 510,860 524,360 $ (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 Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Required: 1. Complete the following: 31,700 28,700 $ 7.10 $7.20 $1.80 $ 6.10 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 31,700 units but sold 34,700 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 (losses) for the second quarter. Req 1A Req 18 Req 1C Req 3A, Req 3B Req 3C Compute the unit product cost under absorption costing. Note: Round your answer to 2 decimal places. Unit product cost What is the company's absorption costing net operating income (loss) for the quarter? Note: Round your intermediate calculations to 2 decimal places. Tami's Creations, Incorporated Absorption Costing Income Statement Total < Req 1A Req 1C > Reconcile the variable and absorption costing net operating income (loss) figures. Note: 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) < Req 1B Req 3A > During the second quarter of operations, the company again produced 31,700 units but sold 34,700 units. (Assume no change in total fixed costs.) What is the company's variable costing net operating income (loss) for the second quarter? Note: Round your intermediate calculations to 2 decimal places. Tami's Creations, Incorporated Variable Costing Income Statement During the second quarter of operations, the company again produced 31,700 units but sold 34,700 units. (Assume no change in total fixed costs.) What is the company's absorption costing net operating income (loss) for the second quarter? Note: Round your intermediate calculations to 2 decimal places. Tami's Creations, Incorporated Absorption Costing Income Statement Total < Req 3A Req 3C > During the second quarter of operations, the company again produced 31,700 units but sold 34,700 units. (Assume no change in total fixed costs.) Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. Note: 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) < Req 3B Req 3C > Show less A