we coling POMLEMS OLDU Tudor opened Timis pengcome 5-14 Abwertion and Variante Costing Product Cat Saleh. LOL, LO2 Crews , Inc. amall manufacturing com b i quarter of people aceste sinon personale e following income statement for the fir s t justempleted a course in managerial accounting State Getting the company through who Ta's Creations, Inc. come Statement For the Outer Ended March 31 $1.120.000 Sales 128.000 units) Variable expenses Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses Fixed manufacturing overhead Fedseling and administrative Net operating loss.... 5462 000 168.000 630.000 490,000 300,000 200,000 500.000 10,000 $ Tik is discouraged over the loss shown for the quarter to be she had planned the statement as support for a bank loan. Another friend, CPA, insists that the y should sorption costing rather than variable costing and argues that if shopion cost had been be mpany would probably have reported at least some profit for the quartier At this point, Ms. Tyler is manufacturing only one product, a swimsuit Production and cost relating to the swimsuit for the first quarter follow Units produced ... Units sold.. 30.000 28.000 Variable costs per unit: Direct materials ..... Direct labor...... Variable manufacturing overhead. ......... Variable selling and administrative.... $3.50 $12.00 $1.00 $6.00 Required 1. Complete the following: 2. Compute the unit product cost under absorption costing. 0. Redo the company's income statement for the quarter using absorption costing c. Reconcile the variable and absorption costing net operating income (loss) figures. Was the CPA correct in suggesting that the company really earned a "profit for the quarter? Explain. uring the second quarter of operations, the company again produced 30,000 units but sold $2,000 units. (Assume no change in total fixed costs.) Prepare a contribution format income statement for the quarter using variable costing. Prepare an income statement for the quarter using absorption costing. Reconcile the variable costing and absorption costing net operating incomes