Return to questi 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 $ 1,124, eee Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,100 units) Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss $ 424,318 171,410 595,720 528,280 279,900 261,880 541,780 5 ( 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 flest quarter follow: 31,100 28.10 Units produced Units sold 559 to search od home Tu pity 910 B D F7 DHI 76 Ree During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative 0 0 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 0 0 0 0 Net operating income (loss) Prey 8 of 11 !!! Next > 35 F o EN here to search THE ve Reg 1A Req 1B Req 1C Reg 3A Red 38 Req 30 During the second quarter of operations, the company again produced 31,100 units but sold 34,100 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 Sales Cost of goods sold Contribution margin Selling and administrative expenses Net operating income (loss) 0 557 search Seved Help Save & Exit eck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completi Return to Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1c Req 3A Reg 3B Reg 3 During the second quarter of operations, the company again produced 31,100 units but sold 34,100 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 (loss) $ 99,300 Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing 27.000 72,300 Absorption costing net operating income (loss) ( Req3B Regu s Next > 8 of 11