solve both questions

Problem 6-23 (Algo) Absorption and Variable Costing: Production Constant, Sales Fluctuate [LO6-1 LO6-2, L06-3) Check my w 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 Tani's Creations, Inc. Income Statenent For the Quarter Ended March 31 Sales (28,200 units) $1,128,000 Variable expenses: Variable cost of goods sold $ 439,920 Variable selling and administrative 183,300 623, 220 Contribution margin 504,780 Fixed expenses: Fixed manufacturing overhead 249,600 Fixed selling and administrative 262,180 516,780 Net operating loss $ 12,000) 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: 31,200 28,200 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.20 $ 6.50 $ 1.90 $ 6.50 Check my work 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: 31,200 28,200 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.20 $ 6.50 $ 1.90 5 6.50 nt nces 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 foss) 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 31,200 units but sold 34, 200 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. Reg 1 Reg JA Reg 38 ReqC Reg 10 Req1C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product com Reg 10 > Checy work Exercise 6-11 (Algo) Segmented Income Statement (L06-4) Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement Sales Variable expenses $ 1,640,000 577,600 Contribution margin Fixed expenses 1,062,400 1,169.280 Net operating income (loss) $ (106,600) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division Accordingly, the Accounting Department has developed the following information: Division East Sales Central West $ 370,000 $ 690,000 5 580.000 Variable expenses as a percentage of sales 505 304 32 Traceable fixed expenses $ 254,000 $ 327,000 $207,600 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) if the proposal is implemented? 2.b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Prepare a contribution format Income statement segmented by divisions