Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22 United Claim Processors provides claims processing services for major insurance companies. The Winnipeg location processes all health benefit claims for various insurance benefit providers.

22
image text in transcribed
United Claim Processors provides claims processing services for major insurance companies. The Winnipeg location processes all health benefit claims for various insurance benefit providers. Claims are received electronically or by mail in the Initial Review Department. Employees in this department sort claims into simple and complex categories and note any missing documentation that may be required. Simple claims are then passed on to the Processing Department where skilled claims processors match information from the claim with each individual's accounts in the database and then estimate the value of the benefit payment to be paid. Complex claims go to a separate processing centre for further examination. The next stage in the simple claims process is the Approval and Payment Department, where final approvals and payments to claimants are initiated and completed. During March, the Initial Review Department transferred 6,580.00 simple claims to the Processing Department. At the end of March, 1,550 claims remained in the Initial Review Department that were 80% complete with respect to conversion. The cost per equivalent unit for the month was $3.00 per claim processed, and total costs incurred in the Initial Review Department during the month totalled $23,460. (Note that there are only conversion costs in this process; no raw materials are added at any point) Required: Prepare the cost reconciliation portion of the Initial Review Department's production report for March. (Do not round intermediate calculation. Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethics Management Auditing And Developing The Ethical Content Of Organizations

Authors: S.P. Kaptein

1st Edition

0792350960, 978-0792350965

More Books

Students also viewed these Accounting questions

Question

Group Size and Communication

Answered: 1 week ago

Question

Understanding Group Roles

Answered: 1 week ago