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 $1,140,000 Tami's Creations, Inc. Income Statement Tor the Quarter Ended March 31 Sales (28,500 units) Variable expenses Variable cost of goods sold $ 484,500 Variable selling and administrative 199.500 Contribution margin Pixed expenses: Pixed manufacturing overhead 268,000 Fixed selling and administrative 208,000 Net operating loss 684.000 456,000 676.000 $ 20,000) 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. 33,500 28,500 Units produced Units sold Variable costs per unit: Direet materials Direct labor Variable manufacturing overhead Variable selling and administrative 5 7.40 $ 7.80 $ 1.80 $ 7.00 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 foss) figures 3. During the second quarter of operations, the company again produced 33,500 units but sold 38,500 units. (Assume no change in total foxed costs) a. What is the company's variable costing net operating income foss) for the second quarter? b. What is the company's absorption costing net operating income foss) 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. Req IA Reg 1B Reg 10 Reg 3A Reg 38 Reg 3C During the second quarter of operations, the company again produced 33,500 units but sold 38,500 units. (Assume no change In total fixed costs.) What is the company's variable costing net operating income (loss) for the second quarter? Variable manufacturing overhead Variable selling and administrative $ 7.80 $ 1.80 $ 7.00 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 33,500 units but sold 38,500 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 1A Reg 10 Reg 10 Req 3A Req 3B Reg 30 During the second quarter of operations, the company again produced 33,500 units but sold 38,500 units. (Assume no change in total fixed costs.) What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable Costing Income Statement Sales $ 1.540.000 Variable expenses Variable cost of goods sold 635 250 Variable selling and administrative 269,500 904,750 635,250 Fored expenses Fixed manufacturing overhead Fixed selling and administrative Net operating income (los) 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 33,500 28,500 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing over head Variable selling and administrative $ 7.40 $ 7.80 $ 1.80 $ 7.00 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 33,500 units but sold 38,500 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 1A Reg 13 Regic Req 3A Reg 38 Req 3C During the second quarter of operations, the company again produced 33,500 units but sold 38,500 units. (Assume no change in total fixed costs) 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, Inc. Absorption Costing Income Statement 0 Net operating income (los) 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 33,500 28,500 Units produced Units sold Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.40 $ 7.80 $ 1.80 $ 7.00 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 33,500 units but sold 38,500 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. Req 1A Reg 1B Req 1C Req Reg 38 Reg 30 During the second quarter of operations, the company again produced 33,500 units but sold 38,500 units. (Assume no change in total fixed costs) 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 (108) Absorption costing net operating income (lona)