MGT510: Managerial Accounting Course Work, EIU, Malaysia: Swipe 50 limited manufactures a specialized screen protector for laptop computers

University European International University (EIU)
Subject Managerial Accounting

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 companies given the same data.

Case Scenario

Swipe 50 limited manufactures a specialized screen protector for laptop computers. The plus swipe is a screen protector that prevents scratches on laptop screens. The company has been in operation for 3 years and now that the company has refined its production process, the directors have decided to focus on the income and costs 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 February and March:

Assignment Instructions

Please create a report for 50 swipes limited and please include the following in your report.
1. Prepare profitstatementforSwipe50Limitedforthemonthof FebruaryandMarchusing:
a. Absorption costing
b. Variable costing

2. Reconcilethe profit calculated using absorption costing that uses variable costing.

3. Explain how each method differs from the other method and also explain the importance of each method.

4. Explain three ways that Swipe 50 Ltd. can improve its accounting systems.

5. State why managing accounting jobs are important in a manufacturing company.

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