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Please when providng help keep in lines with the formatting of the online questions and the grids attached. Thanks! Problem 6-23 Absorption and Variable Costing;

Please when providng help keep in lines with the formatting of the online questions and the grids attached. Thanks! image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Problem 6-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [Lo6-1, Lo6-2, LO6-3] Tami Tyler opened Tami's Creations, Inc., 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, Inc Income Statement For the Quarter Ended March 31 Sales (21,000 units) 762,300 Variable expenses: Variable cost of goods sold 243,600 Variable selling and administrative 168.000 411,600 350,700 Contribution margin Fixed expenses: Fixed manufacturing overhead 196,800 217,000 Fixed selling and administrative 413,800 Net operating loss (63,100) 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 would probably 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: 24,000 Units produced 21,000 Units sold Variable costs per unit: 7.30 Direct materials 2.70 Direct labor 1 Variable manufacturing overhead 60 8.00 Variable selling and administrative Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.) nit product cost

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