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.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 31,300 units but sold 34,300 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.

Sales (28, 300 units) $ 1, 132,000 Variable expenses : Variable cost of goods sold $ 464, 120 Variable selling and administrative 181, 120 645, 240 Contribution margin 486, 760 Fixed expenses: Fixed manufacturing overhead 281, 700 Fixed selling and administrative 218, 560 500, 260 Net operating loss $ ( 13, 500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned a bank loan. Another friend, a CPA, insists that the company should be using absorption costing r argues that if absorption costing had been used the company probably would have reported at le At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data r quarter follow: Units produced 31, 300 Units sold 28, 300 Variable costs per unit: Direct materials $ 7.20 Direct labor $ 7. 30 Variable manufacturing overhead $ 1.90 Variable selling and administrative $ 6.40