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. $ 1,144, Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales28,680 units) Variable expenses : Variable cost of goods sold $ 434,720 Variable selling and administrative 197, 340 Contribution margin Fixed expenses Fixed manufacturing overhead 252,800 Fixed selling and administrative 271,140 Net operating loss 632.058 511,948 52394 $ 12,) 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. swimsuit Production and cost data relating to the swimsuit for the first At this point, Ms. Tyler is manufacturing only one product- quarter follow 31.50 28.00 Units produced Un sold le cotts per unit: binect materials One labon variable manufacturing overhead variable telling and dinistrative Variable costs per unit: Direct aterials Direct labor Variable unufacturing overhead Variable selling and dinistrative 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 oss 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 31.600 units but sold 34.600 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income foss) 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 18 Req1C Reg A Reg 38 Red 3C the unit product cost under absorption costing. (Round your answer to 2 decimal places Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 3A Reg 3B Req 30 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 1 lo Net operating income (loss) pu u L CU LOCULUI (USS) IUI Le second quarters 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 Req 38 Req 3C Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deduction should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) UWULULL S BUSUI PUUH Cosung het operating income (oss) 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 10 Req 3A Req 3B Req3C 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? mi's Creations Inc Variable Costing Income Statement Net operating Income doss) LULUS 3. During the second quarter of operations, the company again produced 31600 units but sold 34,500 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 Req 18 Reg 10 Req Req 38 Reg 3C 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 calculation to decimal places.) Tami's Creati Absorption Costing Income Statemen Net operating income (0)
