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Need help in Requirement 3B & 3C. please add work/steps. thank you. Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning
Need help in Requirement 3B & 3C. please add work/steps. thank you.
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Geting 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, Inc. Income Statement For the Quarter Ended March 31 Sales (28, 100 units) $ 1,124,00 Variable expenses Variable cost of goods sold 5438,360 Variable selling and administrative 193,890 532.250 Contribution sargin 491,750 Fixed expenses: Fixed manufacturing overhead 297,900 Fixed selling and administrative 216,350 $14,250 Net operating loss 5 ( 22,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the ment as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than vanable 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 33.100 28,00 Units produced Units sold Variable cost per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 57.40 5.20 5 2.0 5. 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 33, 100 28, 100 Units produced Units sold Variable costs per unit: Direct saterials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.40 $6.20 $ 2.00 $0.90 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 (ose) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. Duning the second quarter of operations, the company again produced 23,100 units but sold 38 100 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 (oss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter, question by entering your answers in the tabs below. Req 1A Reg 1B Reg 10 Req 3A Reg 38 Reg 3C During the second quarter of operations, the company again produced 33.100 units but sold 38,100 units. (Assume no change in total fixed costs.) 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 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) 1.124.000 237,260 188,740 470,240 $ 202,500 X * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 3A Reg 38 Reg 30 During the second quarter of operations, the company again produced 33.100 units but sold 38,100 units. (Assume no change in total fixed costs.) 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 foss) $ 202.500 X Less: Fixed manufacturing overhead cost released from inventory under absorption costing 45.000 Absorption costing net operating income (loss) $ 247.500 Step by Step Solution
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