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. Sales (28,900 units) Variable expenses: Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss $ 1,156,000 $ 450,840 179,188 630,020 525,980 255,200 282,780 537,980 $ (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: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,900 28,900 $ 7.10 $ 6.60 $ 1.90 $ 6.20 CHARD SULE Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead. Variable selling and administrative Required: 1. Complete the following: $ 7.10 $ 6.60 $ 1.90 5 6.20 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 31,900 units but sold 34,900 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 18 Req 1C Req 3A Req 38 Req 3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost What is the company's absorption costing net operati to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Net operating income (loss) 85,924 3 83 Total 0 Rec P 300 tv P During the second quarter of operations, the company again produced 31,900 un company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement Sales 0 0 0 Net operating income (loss)