Problem 6-23 (Algo) Absorption and Variable Costing: Production Constant, Soles Fluctuate (L06-1, LO6-2, LO6-3) Tami Tyler opened Tami's Creations, Inc., 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 Ta's Creations, Inc. Income Statentot For the Quarter Ended Hach Sales (21,000 vnt.) 5 1.152,000 Variable proses Variable cost of goods sold 5489.60 Verlable selling and aistrative 3997640 6440 Contribution martin 166.500 Fixpenses Fixed manufacturing overhead 254,400 ed in and administrative 224 10 20.36 Net operating loss $ 12,000 Ms. Tyler is discouraged over loss shown for the quarter particularly because she ad 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 costing and orgues that if absorption costing had been used the company probably would have reported at least some profit for the quarter At this point, Ms Ters manufacturing only one product swimsuit Production and cont data relating to the swimsuit for the test quarter follow 1,800 25,000 Witted wit 1016 Variable costs Direct materials Direct labor Variable water wechend Variable calling and administrative 520 11.09 $6.19 Required: 1. Complete the following Compute the unit product cost under absorption cosung b. What is the companyatsorption costing net operating income for the quarter c Reconcile the varioble and absorption costing net operating income oss) figures 3. During the second quarter of operations, the company again produced 31 800 units but sold 34 800 units (Assume no change in argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter 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 31,300 28,800 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 5 7. 20 $ 0.00 $ 1.30 $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 foss) for the quarter? c. Reconcile the variable and absorption costing net operating income (oss) figures 3. During the second quarter of operations, the company again produced 31800 units but sold 34,800 units. (Assume no change in total fixed costs.) a What is the company's variable costing net operating income foss) 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 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Regic Reg DA Reg 38 Regac Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Req18 >