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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* $160,000 $200,000
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April | May | June | |
Manufacturing costs* | $160,000 | $200,000 | $219,000 |
Insurance expense** | 1,020 | 1,020 | 1,020 |
Depreciation expense | 1,960 | 1,960 | 1,960 |
Property tax expense*** | 410 | 410 | 410 |
*Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,020 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November.
The cash payments for Finch Company expected in the month of June are
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