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Tam' Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the yeat. Getting the company through tis first quarter of operations

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Tam' Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the yeat. Getting the company through tis 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 frend who has just completed a course in managerial accountung at state University. Ms. Tyler is discouraged over the loss shown for the quarter, particutarly because she had planned to use the statement as support for a bank loan. Another friend, a CPA inslists that the company should be using absorotion costing rather than variable costing and argues that if absorption cosung had been used the company probably would nave reported at least some profit for the quarter At this point, Ms. Tyler is manufacturing only one product-a swmsurt ploduction and cost cata relating to the swmsut for the firt: quarter follow Required: 1 Complete the following: a. Compute the unit procuct cost under absorption costing b. What is the company's absorption corting net operating income fosst for the cusiter? 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. Reconclle the variable and absorptlon costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,400 units but sold 34,400 units. (Assume no change in total fixed costs.) a. What is the company's varlable costing net operating income floss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcle the variable costing and absorpton costing net operating incomes (losses) for the second quarter. Complete this question by entering your answers in the tabs below. Compute the unit product cost under absorption corting. Note: Round your aruver to 2 decimal places

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