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Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: Manufacturing costs (1) Insurance expense (2)
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: Manufacturing costs (1) Insurance expense (2) Depreciation expense Property tax expense (3) April May June $160,000 $198,000 $212,000 1,140 1,140 1,140 2,150 2,1501 2,150 480 480 480 (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 $1,140 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 for Finch Company expected in the month of June are Oa. $208,500 Ob. $258,000 Oc. $159,000 Od. $49,500
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