Problem 6-23 (Algo) Absorption and Variable Costing; Production Constant, Sales Fluctuate (L06- 1, L06-2, L06-3) 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 Tani'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 $ 446,600 Variable selling and administrative 200, 100 846, 700 Contribution margin 513,300 Fixed expenses Fixed manufacturing overhead 288,000 Fixed selling and administrative 238,800 526, 800 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 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 Check my ,29 UILD SUU , Variable costs per unit: Direct materials $7.10 Direct labor $ 6.50 Variable manufacturing overhead $ 1.80 Variable selling and administrative $ 6.90 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 (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 32,000 units but sold 35,000 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 for the second quarter Complete this question by entering your answers in the tabs below. Regia Reg 1B Req1c Req 3A Reg 3B Req3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost ROSA Reg 1B > Saved ed Homework Check my work Complete this question by entering your answers in the tabs below. Reg 3B Req 1A Reg 1B Reg 10 Req Reg 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 0 Netoperiting income (10) Reg 1B Reg 1A Req 1C Reg Reg 38 Req 30 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) Reg 3A Reg 38 Reg 3C Reg 1A Reg 1B Reg 10 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 OOK tences 0 0 Net operating income foss) Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Reg 3 Req 38 Req3C During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. 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, Incorporated Absorption Costing Income Statement Total 0 Net operating income (loss) 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. Reg 3A Reg 38 Reg 30 Req1A Reg 13 Req 1C SK During the second quarter of operations, the company again produced 32,000 units but sold 35,000 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) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (ons) Absorption costing net operating income (los)