Karen White helped organize a charity fund to help cover the medical expenses of a friend of hers who was seriously injured in a bicycle accident. The fund was named Vicky Hill Recovery Fund (VHRF). Karen contributed $600 of her own money to the fund. The $600 was paid to WKUX, a local radio station that designed and played an advertising campaign to educate the public as to the nee for help. The campaign resulted in the collection of $27,000 cash. VHRF paid $16,500 to Mercy Hospital to cover Vicky's outstanding hospital cost. The remaining $10,500 was contributed to the National Cyclist Fund. Required Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you identify. Entities Mentioned Effect On Cash Vicky Hill Recovery Fund for cash contributions, $27,600 for payment of advertising, $600 payment for hospital bills, $16,500 for donation to National Cyclist Fund, $10,500 by contribution, $600 for advertising revenue, $600 for contributions, $27,000 Karen White WKUX Public Mercy Hospital National Cyclist Fund for medical care, $16,500 for donation, $10,500
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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