Final answer:
The question regarding the number of units that Flip Disk Company must account for during the period cannot be answered without additional information. The self-check question provided an example that illustrates how to calculate accounting profit by subtracting total costs from sales revenue, resulting in a profit of $50,000.
Step-by-step explanation:
To determine how many units must be accounted for during the period for Flip Disk Company, we would need further information about units started and completed during the month, the work in process at the beginning and end of the period, and the percentage of completion of those work-in-process units. This concept pertains to process costing in managerial accounting, where costs are traced and allocated to units of product as they move through the manufacturing process. In particular, direct materials being added at the end of the process indicates that we are looking to understand the flow of materials cost through production.
For the self-check question provided, we can calculate the firm's accounting profit by subtracting the total costs from the sales revenue. Given the sales revenue of $1 million, and total costs for labor ($600,000), capital ($150,000), and materials ($200,000), the accounting profit can be calculated as follows:
Accounting Profit = Sales Revenue - Total Costs
Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000)
Accounting Profit = $50,000