Sales (28,100 units) Variable expenses: Variable cost of goods sold Tami's Creations, Incorporated Income Statement For...

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Sales (28,100 units) Variable expenses: Variable cost of goods sold Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss $1,124,000 $460,840 168,600 629,440 494,560 $279,900 228,160 508,060 $ (13,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she hoped to use the statement as support for a bank loan. Another friend, a CPA, insists the company should be using absorption 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-a swimsuit. Production and cost data for the first quarter follow: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Required: 1. Complete the following: 31,100 28,100 $7.50 $6.90 $2.00 $6.00 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 31,100 units but sold 34,100 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 (losses) for the second quarter. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 3A Required 3B Required 3C What is the company's absorption costing net operating income (loss) for the quarter? Note: Round your intermediate calculations to 2 decimal places. Tami's Creations, Incorporated Absorption Costing Income Statement Direct materials Total Sales (28,100 units) Variable expenses: Variable cost of goods sold Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss $1,124,000 $460,840 168,600 629,440 494,560 $279,900 228,160 508,060 $ (13,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she hoped to use the statement as support for a bank loan. Another friend, a CPA, insists the company should be using absorption 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-a swimsuit. Production and cost data for the first quarter follow: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Required: 1. Complete the following: 31,100 28,100 $7.50 $6.90 $2.00 $6.00 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 31,100 units but sold 34,100 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 (losses) for the second quarter. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 3A Required 3B Required 3C What is the company's absorption costing net operating income (loss) for the quarter? Note: Round your intermediate calculations to 2 decimal places. Tami's Creations, Incorporated Absorption Costing Income Statement Direct materials Total