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 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,200 units) $1,128,000 Variable expenses Variable cost of goods sold $.473,760 Variable selling and administrative 177,660 651420 Contribution margin Fixed expenses Fixed manufacturing overhead 280,800 Fixed selling and administrative 209, 280 490,880 Net operating loss $ 13,500) 476,780 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 orgues 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 28,280 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and sinistrative 57.20 $ 8.00 5 1.60 $6.30 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 compony again produced 31.200 units but sold 34,200 units (Assume no change in total fixed costs) a What is the company's variable couting net operating income boss) for the second quarter? b. What is the company's absorption costing net operating income (joss) 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. Real Reg. 18 R10 Red JA Reg 38 Reg 3 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places) Unit produce cost 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 (1055) for the quarte? c Reconcile the variable and absorption costing net operating income foss) figures 3 During the second quarter of operations, the company again produced 31.200 units but sold 34,200 unito (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 couting net operating income dous) 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. Rea IA Rea 10 Rea 1 Ro 3A Rag 36 Reg 3 . What is the company's absorption costing net operating Income (los) for the quartet? (Round your intermediate calculations to 2 decimal places Tami's Creations, Inc Absorption Costing income Statement Total Net en income Required: 1 Complete the following Compute the unit product cost under absorption costing b. What is the company's obsorption costing net operating income foss) for the quarter? c Reconcile the variable and absorption costing net operating income foss) 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) o What is the company's variable costing niet operating income font) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? Reconcile the variable conting and absorption costing net operating incomes for the second quarter Complete this question by entering your answers in the tabs below. Re 1 Reg 18 Regic Regs Reg 38 Reg 3 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 Vanale costing net operating income oss Absorption costing net operating income Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg IC Reg 3A Reg 38 Reg 3 During the second quarter of operations, the company again produced 31,200 units but sold 34,200 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable. Costing Income Statement Not operating income on Complete this question by entering your answers in the tabs below. Reg 1 Reg 1B Reg 10 Rea SA Red B Reg 3 During the second quarter of operations, the company again produced 31,200 units but sold 34,200 units. What is the company's absorption costing net operating income (los) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc Absorption Costing income Statement Total Not operating income Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Regic Reg 3A Reg 3 Reg 3 During the second quarter of operations, the company again produced 31,200 units but sold 34,200 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 Vunable costing net operating income (105) Absorption costing net operating income (1055)
