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Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing compamy, at the beginning of the year. Getting the company through its lirst quarter of aperotions placed a considerable strain on Ms$.$ Tyler's personal finances. The following income statement for the rirst quarter was prepared by a friend who has just oompleted a course in managerial accounting at state University.

Ms$.$ Tyer is discouraged over the lass shown for the quarteh particulary because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company shoud be using atsorption costing rather than variable costing and angues that ir absorption costing had been used the company probably would have reported at weast some profit for the quarter.

At this poim, Ms$.$ Tyler is manulacturing only one product $-$ a swinsuit Productien and cose data retating to the swinsuit ror the first quarter tollow:

Lnits produced

Units sold

Variable costs per units

birect naterials

birect labor

Variable nanufacturing averhead

Variable selling and idninistrative

$31,200$

$20,200$

$57\mathrm{.}00$

$51\mathrm{.}80$

$56\mathrm{.}30$

Required:

Complete the following:

a$.$ Compute the unit product cost under absorption costing.

b$.$ What is the company's absorption costing net operating income $($less$)$ ror the quarter?

c$.$ Reconcie the variable and absorption costing net operating income flossy figures.

During the second cuarter of operations, the company again produced $31,200$ units but sole $34,200$ units. Messume ho chenge in tolel fred cosis$)$

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

b$.$ What is the company's absorption cosing netoperating neame foss$)$ for the sceond quarte?

c$.$ Reconcle the variable costing and absorption costing net operating incones licssest for the segond quartet.

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

Req $49$

Req IE

Req $3C$

During the second quarter of operations, the company again produced $31,200$ units but scld $34,2004$nits. $($Assume no change in tatal fixed costs.$)$ Heconcle the vansble costing and abserption couing net operating incomes $($iesses$)$ for the second

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