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Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $155,600

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

April May June
Manufacturing costs (1) $155,600 $194,800 $210,900
Insurance expense (2) 1,090 1,090 1,090
Depreciation expense 1,830 1,830 1,830
Property tax expense (3) 410 410 410

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. (2) Insurance expense is $1,090 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 May are

a.$38,900

b.$185,000

c.$223,900

d.$146,100

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