Tami Tyler opened Tami's Creations, Incorporated, 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 Tamis Creations, Incorporated Income statement For the Quarter Ended March 31 Sales (28,200 units) $ 1,128,000 Variable expenses Variable cost of goods sold $ 473,760 Variable selling and administrative 177,660 651, 420 Contribution margin 476,580 Fixed expensen Fixed manufacturing over head 249,600 Fixed selling and administrative 238,980 488,580 Het 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: 31,200 28,200 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $7.30 $ 7.80 $ 1.70 $ 6.30 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 31,200 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? YMONVIVYLE UITVO****NOM. Reg 38 Req 1A Reg 18 Reg 10 Req Req3C 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, Incorporated Variable Costing Income Statement Sales 1,248,000 Variable expenses Indirect labor 249,660 Indirect materials 227.760 Variable selling and administrative 215,460 + 692,880 Contribution margin 555,120 Fixed expenses Fixed manufacturing overhead 249,600 Fixed selling and administrative 238.980 > O 488,580 $ (53,460) Net operating income (loss) "Red text Indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted JU 8.72/10 Total c. Reconcile the variable and absorption costing net operating income (oss) 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 30 Req 1A Reg 1B Req 10 Req Req 3B 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.) Tami's Creations, Incorporated Absorption Costing Income Statement Total $ Sales 1,248,000 Cost of goods sold 773,760 Gross margin 474,240 Selling and administrative expenses 196,560 Net operating income (loss) $ 277,680 *Red text indicates no response was expected in a cell or a formula based calculation is incorrect; no points deducted L. 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 10 Reg 3A Req 3B Req 3C 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 costing net operating income (loss) 93,600 Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing (24,000) Absorption costing net operating income (loss) 69,600 > s