MGT510: Managerial Accounting Report
The Purpose and Context
This assignment will help you develop your understanding of the managerial accounting processes and you will earn how different accounting methods create different pictures for a company given the same data.
Case Scenario
Swipe 50 limited manufactures a specialized screen protector for laptop computers. The plus swipe is a screens protector that prevent scratches on laptop screens. The company has been in operation for 3 years and now that company has refined its production process, the directors have decided to focus on the income and cost arising from the activities. Therefore, the CFO, Tamara J. Blooms, wants to focus on product costing. She wants to look into how both absorption and variable costing affect the profits of the company. The following information is available for the month February and March:
|
February |
March |
|
|
Production (units) |
12,500 |
14,500 |
|
Sales (units) |
11,500 |
15,500 |
|
Direct Materials |
€ 29,000 |
€ 33,250 |
|
Direct Labour |
€ 19,000 |
€ 22,000 |
|
Variable Production Overhead |
€ 7,300 |
€ 8,500 |
|
Total Selling and Administrative Expenses |
€ 44,500 |
€ 57,100 |
Additional Information
- Swipes50 production capacity 20,000 units per month.
- Fixedproduction overheads are €28,600 per
- Swipe50 sells Plus Swipes at €22
- On31st January, the company’s warehouse has no Plus Swipes in
- Fixed and variableelements(variable portion is incurredbased on units sold) are included in the total administration
Assignment Instructions
Please create a report for 50 swipes limited and please include the following in your report.
- PrepareaprofitstatementforSwipe 50Limitedforthemonth of FebruaryandMarchusing:(20%)
- Absorption costing
- Variable costing
- Reconciletheprofitcalculatedusing absorption costing (20%)
- Explain how each method differs from the other method and also explain the importance of each (20%)
- Explain three ways that Swipes 50 can improve its accounting systems. (20%)
- Statewhy managing accounting jobs are important in a (20%)
Requirements
- 3,500– 4,000 words with APA Format
- Double-spaced(2.0) or One and Half (1.5) spaced
- 12 TimesNew Roman font
- PageNumber (footer, right bottom corner)
- 4major sections: Table of Content, Title Page, Main Body, References
