Tami's Creations, Incorporated Income Statement. For the Quarter Ended March 31 Sales (28,000 units) Variable expenses:

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Tami S Creations Incorporated Income Statement For The Quarter Ended March 31 Sales 28 000 Units Variable Expenses 1 (30.24 KiB) Viewed 11 times

Tami S Creations Incorporated Income Statement For The Quarter Ended March 31 Sales 28 000 Units Variable Expenses 2 (30.49 KiB) Viewed 11 times

Tami S Creations Incorporated Income Statement For The Quarter Ended March 31 Sales 28 000 Units Variable Expenses 3 (25.77 KiB) Viewed 11 times

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 $ 450,800 184,800 248,000 248,400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 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 costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. $ 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: 31,000 28,000 635,600 484,400 $7.40 $ 7.00 $ 1.70 $ 6.60 496,400 $ (12,000)

Req 1A Req 1B Req 1C Tami's Creations, Incorporated Variable Costing Income Statement Sales Variable expenses: Indirect materials Indirect labor Variable selling and administrative Variable cost of goods sold Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating income (loss) During the second quarter of operations, the company again produced 31,000 units but sold 34,000 units. What is the company's variable costing net operating income (loss) for the second quarter? Req 3A X X ✔ ✔ ✪ 251,600 238,000 224,400 57,800 x Req 3B 248.000 248,000 1,360,000 771,800 588,200 Req 3C 496,000 $ 91,800

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 $ 7.40 $7.00 $ 1.70 $6.60 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.