Tomi 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 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,000 units) $ 1,120,000 Variable expenses Variable cost of goods sold 5 445,200 Variable selling and administrative 193,200 638,480 Contribution margin 481,680 Fixed expenses: Fixed manufacturing overhead 264,000 Fixed selling and administrative 237,600 501,600 Net operating loss $ ( 20,000) 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 monufacturing only one producta swimsuit Production and cost data relating to the swimsuit for the first quarter follow 33,000 28,000 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.50 $6.60 $ 1.80 $6.90 33, eee 28, eee Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.50 $ 6.60 $ 1.80 $6.99 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 33.000 units but sold 38.000 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 1B Reg 1C Reg 3A Req3e Reg 30 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places Unit produs cost Reg 13 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 10 Reg Reg 3B Reg 3C 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 Net operating income (oss) (Reg 1A Roq 1C> Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Reg 3A Reg 3B Reg 3C 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 (loss) Absorption costing net operating income (los) Complete this question by entering your answers in the tabs below. Reg 3A Reg 38 Reg 3C Reg 1A Reg 18 Reg 10 During the second quarter of operations, the company again produced 33,000 units but sold 38,000 units. (Assume no change in total fixed costs.) What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable Costing Income Statement Nel operating income (oss) Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 3A Req 38 Reg 3C During the second quarter of operations, the company again produced 33,000 units but sold 38,000 units. (Assume no change in total fixed costs. 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 (los) Absorption costing net operating income (los)