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 February and March:

Production (units) February:12,500 March:14,500

Sales (units) February:11,500 March:15,500

Direct Materials February: 29,000 March: 33,250

Direct Labour February: 19,000 March: 22,000

Variable Production Overhead February: 7,300 March: 8,500

Total Selling and Administrative Expenses February: 44,500 March: 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 companys warehouse has no Plus Swipe sin 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: a. Absorption costing & b. Variable costing ?