Homework_ Chapter 6 0 Saved 5 points Skipped References Tami Tyler opened Tami's Creations, Incorporated. a small manufacturing company. at the beginning of the year. Getting the company through its rst quarter of operations placed a considerable strain on Ms. Tyler's personal nances. 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 (29,000 units) $ 1,160,000 Variable expenses: Variable cost of goods sold $ 472,700 Variable selling and administrative 197,200 669,900 Contribution margin 490,100 Fixed expenses: Fixed manufacturing overhead 288,000 Fixed selling and administrative 215,600 503,600 Net operating loss $ ( 13,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as supportfor a bank loan. Anotherfriend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that ifabsorption 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 producta swimsuit. Production and cost data relating to the swimsuit for the first quarterfollow: Units produced 32,000 Units sold 29,000 Variable costs per unit: Direct materials $ 7.30 Direct labor $ 7.00 Variable manufacturing overhead $ 2.00 Variable selling and administrative $ 6.80 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 ofoperations, the company again produced 32,000 units but sold 35,000 units. (Assume no change in total xed 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 Req lB Req 1C Req 3A Req BB Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost _ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 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, Incorporated Absorption Costing Income Statement Total Net operating income (loss) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 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) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 3A Req 3B Req 3C es During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement Net operating income (loss)