MGT510: Managerial Accounting Module Assignment: Managerial Accounting Report The Purpose

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MGT510: Managerial Accounting
Module Assignment: 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 laptops 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 (units) 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
1. Swipes 50 Ltd. production capacity 20,000 units per month.
2. Fixed production overheads are €28,600 per month.
3. Swipe 50 sells Plus Swipes at €22 each.
4. On 31st January, the company’s warehouse has no Plus Swipes in inventory.
5. Fixed and variable elements (variable portion is incurred based on units sold) are included in the total administration expenses.
Assignment Instructions
Please create a report for 50 swipes limited and please include the following in your report.
1. Prepare a profit statement for Swipe 50 Limited for the month of February and March using: (20%) a. Absorption costing
b. Variable costing
2. Reconcile the profit calculated using absorption costing to that using variable costing. (20%)
3. Explain how each method differs from the other method and also explain the importance of the each methods.
4. Explain three ways that Swipes 50 Ltd. can improve its accounting systems. (20%)
5. State why managing accounting jobs are important in a manufacturing company. (20%)
1. 3,500 – 4,000 words with APA Format
2. Double-spaced (2.0) or One and a Half (1.5) spaced
3. 12 pt. Times New Roman font
4. Page Number (footer, right bottom corner)
5. 4 major sections: Table of Content, Title Page, Main Body, References
Mark Sheet/ Assessment Evaluation Form
Student’s Full Name: _________________________________________
Module: ____________________________________________________
Marker’s Full Name: __________________________________________
Section Marks Allocation Marks Attained Comments
1. Introduction 10 marks
2. Body:
a) Industry Knowledge and Application
b) Theoretical Application
c) Practical Application
d) Model 10 marks
15 marks
20 marks
20 marks
3. Conclusion 10 marks
4. Word Choice and Grammar 5 marks
*** Words Penalty ***
This penalty is for papers that overly exceed the word count. (-5)
5. References 10 marks
Total marks allocated and achieved: 100 marks

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