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 (28,480 units) $1,136,000 Variable expenses: Variable cost of goods sold $ 465,760 Variable selling and administrative 190,280 656, 040 Contribution margin 479,960 Fixed expenses: Fixed manufacturing overhead 282,600 Fixed selling and administrative 210,860 493,460 Net operating loss $ 13,500) 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: 31,400 28,400 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.40 $ 7.10 $ 1.90 $6.70 Required: 1. Complete the following: that are Variable selling and administrative $ 6.70 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 31,400 units but sold 34,400 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 quartet, Complete this question by entering your answers in the tabs below. Req IA Reg 18 Reg 1 Reg 3A Reg 35 Reg 3 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Une product cont Reg18 > 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 31,400 units but sold 34,400 units. (Assume no cha 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 1B Req 1C Rea Reg 3B Reg 3C What is the company's absorption costing net operating Income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total 0 Not operating income (loss) 1. Complele u IONIOWITY. 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 (oss) figures. 3. During the second quarter of operations, the company again produced 31,400 units but sold 34,400 un 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, 05 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reh 10 Req Req 3B Req 30 1 nt Reg 1C Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions shoul as a negative.) rences Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) L. PELVICIIE LIC VOITOVIC CUSTY CHU OLSUI PUUII CUSU Helopercury HILUHIES TUILIC SECnu qucre. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 3A Reg 3B Reg 3C During the second quarter of operations, the company again produced 31,400 units but sold 34,400 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable Costing Income Statement 0 0 0 Net operating income (loss) . What is the company's absorption costing net operating income (loss) for the second quarter? . 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 Req 1B Reg 10 Req 3A Req 3B Req 30 During the second quarter of operations, the company again produced 31,400 units but sold 34,400 units. What is th company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculati decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total 0 Net operating income (loss)
