managerial accounting

Problem 6-23 (Algo) Absorption and Variable Costing; Production Constant, Sales Fluctuate (L06-1, LO6-2, LO6-3 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 (28,600 units) $ 1,144,000 Variable expenses: Variable cost of goods sold $ 466, 189 Variable selling and administrative 200,200 666, 380 Contribution margin 477,620 Fixed expenses: Fixed manufacturing overhead 284,480 Fixed selling and administrative 206,728 491,120 Net operating loss $(13,500) 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 variable 21 of 21 Next hnect Soved Help Save & Exit Sub Check my wor Complete this question by entering your answers in the tabs below. Ree LA Reg 13 Regic Req 3A Req 38 Req 30 During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (oss) Absorption costing net operating income (loss)