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 $ 462,480 Variable selling and administrative 192,760 654,240 Contribution margin 473,760 Fixed expenses Fixed manufacturing overhead 249,600 Pixed selling and administrative 2:36. 160 485,760 Net operating loss $ 12,000) 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: 1 ences 31,200 28,200 Unito produced Units sold Variable costs per unit: Direct materiale Direct labor Variable manufacturing overhead Variable selling and adninistrative $ 7.20 $ 7.50 $ 1.70 $6.80 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 31,200 units but sold 34,200 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 Req 1B Req 1C Req Reg 38 Reg 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit productCOM Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1C Req 3A Req 38 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 Net operating income (los) Complete this question by entering your answers in the tabs below. Reg 1c Reg 1A Reg 1B Reg 3A Req 3B Req 3C 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 Variable conting net operating incomo (lous) Absorption costing net operating income (oss) Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 1C Req 3A Reg 38 Reg 3C 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 Net operating income (loss) Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Reg 1C Req 3A Reg 38 Reg 30 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 (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) ces Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (oss) Complete this question by entering your answers in the tabs below. Reg 3C Reg 1 Reg 18 Reg 1C Req Reg 3B 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 Variable couting net operating income (los) Absorption couting net operating Income (on)