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, Tancrations, the Income statement Vote Quarter nded Mrch 31 Sales 0.00 units Variable Variable out of goods sold 434.220 Vataboling and ministrative 6480 Contribution rain Vapest danufacturing overhead 200.00 od nown intrative 249,020 534,020 not operating to 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 vartable 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 Uit Drone 31.400 20,600 Visbet point Otter Dirut Vattenacturing the $17.40 5.90 1.90 5.60 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 (oss) for the quarter? c. Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31600 units but sold 34 600 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? Reconcile the variable costing and absorption costing net operating incomes for the second quarter 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, Tancrations, the Income statement Vote Quarter nded Mrch 31 Sales 0.00 units Variable Variable out of goods sold 434.220 Vataboling and ministrative 6480 Contribution rain Vapest danufacturing overhead 200.00 od nown intrative 249,020 534,020 not operating to 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 vartable 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 Uit Drone 31.400 20,600 Visbet point Otter Dirut Vattenacturing the $17.40 5.90 1.90 5.60 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 (oss) for the quarter? c. Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31600 units but sold 34 600 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? Reconcile the variable costing and absorption costing net operating incomes for the second quarter