5.

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$156,700	$192,500	$212,000
Insurance expense (2)	870	870	870
Depreciation expense	2,060	2,060	2,060
Property tax expense (3)	540	540	540

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $870 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are

a.$156,700

b.$138,418

c.$120,135

d.$117,525

6.

Consider Derek's budget information: materials to be used, $62,100; direct labor, $202,000; factory overhead, $398,600; work in process inventory on January 1, $188,100; and work in progress inventory on December 31, $193,600. What is the budgeted cost of goods manufactured for the year?

a.$193,600

b.$850,800

c.$657,200

d.$662,700