MGT510:ManagerialAccounting Report

ThePurposeandContext

Thisassignmentwillhelp you develop your understandingof themanagerial accounting processesand youwillearn how different accountingmethods create different picturesfor a company given the samedata.

CaseScenario

Swipe 50 limited manufactures a specialized screen protector for laptop computers. Theplus swipe is a screens protector that prevent scratches on laptop screens. The companyhas been in operation for 3 years and now that company has refined its productionprocess, the directors have decided to focus on the income and cost arising from theactivities. Therefore, the CFO, Tamara J. Blooms, wants to focus on product costing. Shewants to look into how both absorption and variable costing affect the profits of thecompany.ThefollowinginformationisavailableforthemonthFebruaryandMarch:

AdditionalInformation

1. Swipes50productioncapacity20,000unitspermonth.
2. Fixedproductionoverheadsare28,600per
3. Swipe50sellsPlusSwipesat22
4. On31stJanuary,thecompanyswarehousehasnoPlusSwipesin
5. Fixed and variableelements(variable portionisincurredbased on unitssold) areincludedinthetotaladministration

AssignmentInstructions

Pleasecreateareportfor50swipeslimitedandpleaseincludethefollowinginyourreport.

1. PrepareaprofitstatementforSwipe50LimitedforthemonthofFebruaryandMarchusing:(20%)
   1. Absorption costing
   2. Variable costing
2. Reconciletheprofitcalculatedusingabsorptioncosting(20%)
3. Explain how each method differs from theother method and also explaintheimportance of each(20%)
4. Explain three ways that Swipes 50canimproveitsaccountingsystems.(20%)
5. Statewhymanagingaccountingjobsareimportantina(20%)

Requirements

1. 3,5004,000wordswithAPAFormat
2. Double-spaced(2.0)orOneand Half(1.5)spaced
3. 12 TimesNewRomanfont
4. PageNumber (footer,rightbottomcorner)
5. 4majorsections:TableofContent,TitlePage,MainBody,References