Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz i dont understand Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its

plz i dont understand
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 frlend who has just completed a course in managerial accounting at State University. Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had plannedo us the statement as support for a bank loan. Another friend, o 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 proft for the quarter At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data redating to the swimsuit for the first quarter follow: 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: 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 31,800 units but sold 34 300 upits. (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. Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) What is the company's absorption costing net operating income (loss) for the quarter? (Round your to 2 decimal places.) Reconcile the variable and absorkion costing net operating income (loss) figures. (Losses and deduc as a negative.) Uring the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the ompany's variable costing net operating income (loss) for the second quarter? During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit To Love

Authors: Jezabel Lima

1st Edition

B0C2SG8JS7, 979-8988078807

More Books

Students also viewed these Accounting questions

Question

Multiple Cholce Option A Option B Option C Option D

Answered: 1 week ago