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 Tani's Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales 28,580 units) $ 1,140,000 Variable expenses: Variable cost of goods sold $ 450, 300 Variable selling and administrative 185,250 635,550 Contribution margin 504,450 Fixed expenses: Fixed manufacturing overhead 252,000 Fixed selling and administrative 264,450 516,450 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 31,500 Units sold 28,500 Variable costs per unit: Direct materiais Direct labor Variable manufacturing overhead Variable selling and administrative Units produced $ 2.30 $6.90 5 1.60 $ 6.50 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 31,500 units but sold 34,500 units. (Assume no change in total fixed costs.) a. What is the company's variable costing niet 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 IAR Reg 18 Reg 10 Reg 3A Reg 38 Reg 3C Compute the unit product cost under absorption costing (Round your answer to 2 decimal places.) Unit product cost Reg 10 > HUR Vandreanu dusu pon CUSHIYO ILITU. 3. During the second quarter of operations, the company again produced 31,500 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 Reg 13 Req 1C Reg 3A Reg 38 Reg 3C What is the company's absorption dosting net operating Income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.) Tam's Creations, Incorporated Absorption Costing Income Statement Total Net operating income foss) c. Reconcile the variable and absorption costing net operating income (loss) figures 3. During the second quarter of operations, the company again produced 31,500 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. Req IA Req 18 Reatic Req 3A Req 38 Reg 30 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 costing net operating income (ons) Absorption costing net operating income foss) Req 1A Reg 1B Red 10 Req 3A Reg 38 Reg 30 During the second quarter of operations, the company again produced 31,500 units but sold 34,500 units. What is the company's variable costing net operating income (loss) for the second quarter? k Tami's Creations, Incorporated Variable Costing Income Statement cos Not operating income (los) Ben 10 this question by entering your answers in the tabs below. Req 1A Req 1B Regic Reg Reg die Reg 30 During the second quarter of operations, the company again produced 31,500 units but sold 34,500 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 Net operating income (loss) Hee SC >
