Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 15, Problem 4MAD

A.

To determine

Compute the number of in-patient days for each month.

A.

Expert Solution
Check Mark

Answer to Problem 4MAD

The number of in-patient days for the month of April, May and June are 5,760, 6,510 and 6,750 in-patients days respectively.

Explanation of Solution

Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating the information, which is designed to meet the goals of the organization.

Determine the in-patient days for the month of April.

    Inpatientdays for April}= Patients admitted×Average length of stay per patients=1,440×4.0=5,760

Determine the in-patient days for the month of May.

    Inpatientdays for May}= Patients admitted×Average length of stay per patients=1,860×3.5=6,510

Determine the in-patient days for the month of June.

    Inpatientdays for June}= Patients admitted×Average length of stay per patients=2,250×3.0=6,750

B.

To determine

Compute the available bed days rate for each month.

B.

Expert Solution
Check Mark

Answer to Problem 4MAD

  • • The total available beds including both the private and semi private rooms are (100 + 200)300 rooms.
  • • The available bed day’s rates for the month April, May and June are 9,000, 9,300 and 9,000 bed days respectively.

Explanation of Solution

Determine the beds available for private rooms.

    Available beds forprivate rooms}=(Number of rooms× Beds per room )=100×1=100

Determine the beds available for semi-private rooms.

    Available beds forsemiprivate rooms}=(Number of rooms× Beds per room )=200×1=200

Determine the available bed days for the month of April.

    Available bed daysfor April}=(Bedcapacity × Days in April)=300 × 30=9,000

Determine the available bed days for the month of May.

    Available bed daysfor May}=(Bedcapacity × Days in May)=300 × 31=9,300

Determine the available bed days for the month of June.

    Available bed daysfor June}=(Bedcapacity × Days in June)=300 × 30=9,000

C.

To determine

Compute the occupancy rate for the month of April, May, June.

C.

Expert Solution
Check Mark

Answer to Problem 4MAD

The occupancy rates for Hospital V SS for the month of April, May and June are 64%, 70 and 75% respectively.

Explanation of Solution

Determine the occupancy rate for the month of April.

    Occupancy rate=In-patient days [A]Available bed days [B]×100=5,7609,000×100=64%

Determine the occupancy rate for the month of May.

    Occupancy rate=In-patient days [A]Available bed days [B]×100=6,5109,300×100=70%

Determine the occupancy rate for the month of June.

    Occupancy rate=In-patient days [A]Available bed days [B]×100=6,7509,000×100=75%

D.

To determine

Interpret the results in (C).

D.

Expert Solution
Check Mark

Explanation of Solution

By interpreting the results in (C), it is found that the occupancy rate has been increased from April to May, and again increased from May to June. From the three months data it is found that the number of admission is increasing, while the average length of stay is decreasing. This decline in the average length of stay can be due to the greater efficiency in the treatment, assuming no changes in the treatment mix. Thereby, due to the reduced length of stay and greater occupancy, the hospital can accept more patients each month.

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Chapter 15 Solutions

Financial And Managerial Accounting

Ch. 15 - Management process Three phases of the management...Ch. 15 - Direct materials, direct labor, and factory...Ch. 15 - Prob. 3BECh. 15 - Product and period costs Identify the following...Ch. 15 - Cost of goods sold, cost of goods manufactured...Ch. 15 - Prob. 6BECh. 15 - Prob. 1ECh. 15 - Indicate whether the following costs of Procter ...Ch. 15 - Prob. 3ECh. 15 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - Classifying costs In a service company A partial...Ch. 15 - Classifying costs The following is a manufacturing...Ch. 15 - Financial statements of a manufacturing firm The...Ch. 15 - Manufacturing company balance sheet Partial...Ch. 15 - Cost of direct materials used in production for a...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Income statement for a manufacturing company Two...Ch. 15 - Statement of cost of goods manufactured for a...Ch. 15 - Cost of goods sold, profit margin, and net income...Ch. 15 - Cost flow relationships The following information...Ch. 15 - The following is a list of costs that were...Ch. 15 - The following is a list of costs incurred by...Ch. 15 - A partial list of Foothills Medical Centers costs...Ch. 15 - Manufacturing income statement, statement of cost...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - The following is a list of costs that were...Ch. 15 - Prob. 2PBCh. 15 - A partial list of The Grand Hotels costs follows:...Ch. 15 - Several items are omitted from the income...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 15 - Hilton Hotels and Marriott International:...Ch. 15 - Comparing occupancy for two hotels Sunrise Suites...Ch. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Communication Todd Johnson is the Vice President...Ch. 15 - For each of the following managers, describe how...Ch. 15 - The following situations describe scenarios that...Ch. 15 - Geek Chic Company provides computer repair...Ch. 15 - Which of the following items would not be...Ch. 15 - Prob. 2CMACh. 15 - A firm has 100,000 in direct materials costs,...Ch. 15 - In practice, items such as wood screws and glue...
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