Question: WeeCare is a not for profit that provides food clothing and medical
WeeCare is a not-for-profit that provides food, clothing, and medical care to children in developing countries. U. S. television programs are sponsored by WeeCare to describe its programs, show the needy children, and ask for contributions. WeeCare’s operating policies and internal management memos state that these programs are designed to educate the public about the needs of children in developing countries and to raise contributions. The employees producing the programs are familiar with WeeCare’s programs; the executive producer is paid $ 25,000 plus will receive a $ 5,000 bonus is the aired program raises over $ 1,000,000 in contributions. Discuss whether the cost of the programs should be considered an allocable joint cost or if the entire cost should be considered fundraising.
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