Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tami Tyler opened Tami's Creations, Incorporated, 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, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin. Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss Units produced Units sold Variable costs per unit: $ 445,200 190,400 < Prev 248,000 248,400 Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support fo 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. 31,000 28,000 $ 1,120,000 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 635,600 484,400 9 of 11 496,400 $ (12,000) Next > 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: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,000 28,000 $ 7.30 $7.10 $ 1.50 $ 6.80 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 31,000 units but sold 34,000 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 During the second quarter of operations, the company again produced 31,000 units but sold 34,000 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) ✔ Total 1,360,000 812,600 547,400 231,200 S 68,200 Tami Tyler opened Tami's Creations, Incorporated, 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, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin. Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss Units produced Units sold Variable costs per unit: $ 445,200 190,400 < Prev 248,000 248,400 Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support fo 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. 31,000 28,000 $ 1,120,000 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 635,600 484,400 9 of 11 496,400 $ (12,000) Next > 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: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,000 28,000 $ 7.30 $7.10 $ 1.50 $ 6.80 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 31,000 units but sold 34,000 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 During the second quarter of operations, the company again produced 31,000 units but sold 34,000 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) ✔ Total 1,360,000 812,600 547,400 231,200 S 68,200 Tami Tyler opened Tami's Creations, Incorporated, 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, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin. Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss Units produced Units sold Variable costs per unit: $ 445,200 190,400 < Prev 248,000 248,400 Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support fo 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. 31,000 28,000 $ 1,120,000 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 635,600 484,400 9 of 11 496,400 $ (12,000) Next > 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: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,000 28,000 $ 7.30 $7.10 $ 1.50 $ 6.80 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 31,000 units but sold 34,000 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 During the second quarter of operations, the company again produced 31,000 units but sold 34,000 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) ✔ Total 1,360,000 812,600 547,400 231,200 S 68,200 Tami Tyler opened Tami's Creations, Incorporated, 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, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin. Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss Units produced Units sold Variable costs per unit: $ 445,200 190,400 < Prev 248,000 248,400 Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support fo 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. 31,000 28,000 $ 1,120,000 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 635,600 484,400 9 of 11 496,400 $ (12,000) Next > 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: Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,000 28,000 $ 7.30 $7.10 $ 1.50 $ 6.80 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 31,000 units but sold 34,000 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 During the second quarter of operations, the company again produced 31,000 units but sold 34,000 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) ✔ Total 1,360,000 812,600 547,400 231,200 S 68,200
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To answer your questions lets calculate the unit product cost under absorption costing and reconcile the net operating income loss figures for the first and second quarters 1a Compute the uni... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
During the second quarter of 2013, Waterways' B.C. plant had established the following static budget and overhead costs: WATERWAYS CORPORATION-B.C. PLANT Manufacturing Overhead Budget (Static) For...
-
Cieck y wor THis showS what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to quest 14 A manufacturer produces both widgets and gadgets....
-
The output gap in the second quarter of 2009 was $0.8 trillion. How much fiscal stimulus would be required to close the output gap if the multiplier was as large as the Obama team believes? How much...
-
FIGURE P15.62 is a top view of an object of mass m connected between two stretched rubber bands of length L. The object rests on a frictionless surface. At equilibrium, the tension in each rubber...
-
Ming Yue Company pays $368,250 for real estate plus $19,600 in closing costs. The real estate consists of land appraised at $166,320; land improvements appraised at $55,440; and a building appraised...
-
A TV channel has a bandwidth of 6 MHz. If we send a digital signal using one channel, what are the data rates if we use one harmonic, three harmonics, and five harmonics?
-
We have seen that we can use a bubble plot to show a third quantitative variable on a scatterplot. Another way to show three quantitative variables together is to use a 3-dimensional scatterplot,...
-
Use the ending balances from Problem 10- 27 to prepare a balance sheet.
-
Question 8 YOLF Corporation Balance Sheet - Current Year YOLF Corporation Balance Sheet (in $Millions) Assets Liabilities Current Year Current Year Current Assets Current Liabilities Cash $124...
-
Use the data in file agpop.dat for this exercise. Let yi be the value of acres92 for unit i and xi be the value of acres87 for unit i. Draw an SRS of size 400. Now generate missing data from your...
-
xa Given f(x) = x + x, determine f' (3) by using the formula f'(a) = lim all of your work. f(x)- f(a) x-a Show
-
The employees of a transportation company complained to management that the men's washroom was very messy, despite regular cleaning. The employer implemented a log system that monitored the use and...
-
1. What do you think are the major reasons that more organizations are recruiting a diverse workforce? 2. What are some ways that recruiting could and should be done differently to attract more...
-
Think about the last time you had a problem with your own performance, either on the job or in one of your classes. Using the nine-step performance analysis model from Fournies, try to identify the...
-
If you were part of a team at a university that wanted to repeat the Scottish researchers study link between Alzheimer's and diet study described in , would you try to develop primary data on your...
-
What research options will work best for your business and industry? How can you ensure that these are the most helpful for your future success? Why? Make sure that you have clearly explained your...
-
16. Maximize P = 5x + 4x2 subject to the constraints x + x = 2 2x + 3x 6 x = 0 x 0 X1
-
What steps must a business take to implement a program of social responsibility?
-
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided...
-
A business executive once stated, Depreciation is one of our biggest operating cash inflows. Do you agree? Explain.
-
What are the four categories of measures in a balanced scorecard?
-
Let's see how the variational method works in another application. Let's assume we didn't know the ground-state energy of the quantum harmonic oscillator and use the variational method to determine...
-
Let's now study the power method for estimating the ground-state energy, applied to the quantum harmonic oscillator. For this problem, we will work with the Hamiltonian...
-
The anharmonic oscillator is the quantum system that is a modification to the harmonic oscillator, including a term quartic in position: \[\begin{equation*}\hat{H}=\frac{\hat{p}^{2}}{2 m}+\frac{m...
Study smarter with the SolutionInn App