he 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 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. (20%) 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%) Requirements 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