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 (28,600 units) Variable expenses: 1,144,000 Variable cost of goods sold Variable selling and administrative 483,340 193,050 676,390 467,610 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative 278,080 202,730 480,810 Net operating loss 13,200) 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: Units produced Units sold Variable costs per unit: 31,600 28,600 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $7.60 7.40 $1.90 $6.75 Requirec 1. Complete the following a. Compute the unit product cost under absorption costing 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 31,600 units but sold 34,600 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 Req 1B Req 1C Req 3A Req 3B Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost 25.70 Req 1A Req 1B Req 1A Req 1B Req 1C Req 3A Req 3B What is the company's absorption costing net operating income (loss) for t to 2 decimal places.) Tami's Creations, Inc Absorption Costing Income Statement Total Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,144,000 735,020 408,980 395,780 $ 13,200 Req 1A Req 1BReq 10c Req 3A Req 3B Req 3C lheblend absorption costing net operating inceme (loss) fgures. (losses and deductions as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income (loss) $ (13,200) $ 26,400 $ 13,200 During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc Variable Costing Income Statement Sales $1,144,000 Variable expenses: Variable cost of goods sold Variable selling and administrative 584,740 233,550 818,290 Contribution margin Fixed expenses 325,710 Fixed manufacturing overhead Fixed selling and administrative 278,080 202,730 480,810 Net operating income $155,100) Reg 3B > During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. 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 Total Sales Cost of goods sold Gross margin Selling and administrative expenses 0 0 Req 3A Req 3C > Req 1A Req 1B Req 1C Req 3A Req 3B Reg 3C During the second quarter of operations, the company again produced 31,600 units but sold 34,600 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 Variable costing net operating income (loss) uct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (loss) KReq 3B Req 3C