Problem $6-23($Algo$)$ Absorption and Varlable Costing; Production Constant, Sales Fluctuate $[$LO$6-1,$ LO$6-2,$ LO$6-3]$

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.Ms$.$ Tyler is discouraged over the loss shown for the quarter, particulorly because she had planned to use the statement as support for a bank loan. Another friend, $0$ CPA, insists that the company should be using absorption costing rather than variable costing and argues that if obsorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms$.$ Tyler is monufacturing only one product$-Q$ swimsuit. Production and cost dato relating to the swimsuit for the first quorter follow:Required:

Compjete the following:

Q$.$ Compute the unit product cost under obsorption costing.

b$.$ Whot is the compony's absorption costing net operating income $($loss$)$ for the quarter?

c$.$ Reconcile the vorisble ond absorption costing net operating income $($loss$)$ figures.

During the second quarter of operations, the company again produced $31,500$ units but sold $34,500$ units. $($Assume no change in total fixed costs.$)$

a$.$ What is the compony's vorisble costing net operating income $($loss$)$ for the second quarter?

b$.$ What is the compony's obsorption costing net operating income $($loss$)$ for the second quarter?

c$.$ Reconcile the varisble costing ond obsorption costing net operating incomes $($losses$)$ for the second quarter.

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

Req $14$ Req $18$ Req $1C$ Req $3B,$ Req $3C,$ R

During the second quarter of operations, the company again produced $31,500$ units but sold $34,500$ units. $($Assume no change in total fixed costs.$)$ What is the company's variable costing net operating incame $($loss$)$ for the second quarter? $($Round your intermediate calculations to $2$ decimal places.$)$

$\backslash$table$[[$Taml$\text{'}$s Creatione, Incorporated,,$],[$Varlable costing Income statement,,$],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,]]$