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 TAMEN Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales (20,300 units) $1,132,000 Variable expenses Variable cout of goods sold $ 413,160 Variable selling and administrative 109.610 602.790 Contribution margin 529,210 Pixed expenses Pixed manufacturing overhead 281,700 Tixed selling and administrative 261,010 542.210 Het 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 31,300 28,300 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.20 $ 5.00 $ 1.60 $ 5.70 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 31.300 units but sold 34,300 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 foss) 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 LA Reg 13 Regic Req JA Reg 38 Req3C Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places) Una productos Reg 10 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 3A Req 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, Incorporated Absorption Costing Income Statement Total Net operating income (loss) 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 31,300 units but sold 34,300 u 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 Req Reg 3B Reg 3C Reconcile the variable and absorption costing net operating income (loss) figures. (losses and deductions she as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income foss) Absorption costing net operating income (loss) Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 1C Req 3A Req 3B Reg 30 During the second quarter of operations, the company again produced 31,300 units but sold 34,300 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement 0 0 0 Net operating income (loss) O. ***MIC Lynvie LUTY UPCTITY ILI TU HIC JELUHU YUU!! 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 Reg 18 Reg 10 Req 3A Reg 38 Reg 30 During the second quarter of operations, the company again produced 31,300 units but sold 34,300 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 0 Net operating income (loss) 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 31,300 units but sold 34,300 units. (Assume no 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 (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 Reg 1B Req1c Reg 3A Req 38 Reg 30 During the second quarter of operations, the company again produced 31,300 units but sold 34,300 units. Reconcile they 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) Absorption costing net operating income (loss)
