Tomi Tyler opened Tomi's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company

through its first quorter of operations placed a considerable strain on Ms$.$ Tyler's personal finances. The following income statement for

the first quarter wos prepared by o friend who just completed o course in manogerial accounting ot State University.

Ms$.$ Tyler is discouroged over the loss shown for the quarter, particularly because she hoped to use the statement as support for a

bonk loan. Another friend, a CPA, insists the company should be using obsorption costing rather than variable costing and claims if

absorption costing had been used, the company probably would have reported a profit for the quarter.

At this point, Ms$.$ Tyler makes only one product$-$o swimsuit. Production and cost data for the first quarter follow.

Required:

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.

During the second quarter of operations, the company ogain produced $31,400$ units but sold $34,400$ units. $($Assume no change in

totel fixed costs.$)$

a$.$ What is the company's voriable 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 $($losses$)$ for the second quarter.

Complete this question by entering your answers in the tabs below.

Required $1A$

Required $1C$ Required $3A$

Required $3$E

Required $3$C

During the second quarter of operations, the company again produced $31,400$ units but sold $34,400$ units. $($Assume no change

in total fixed costs.$)$ What is the company's variable costing net operating income $($loss$)$ for the second quarter?

Note: Round your intermediate calculations to $2$ decimal places.