Use the following information for problems 17 and 18: ABC Company began its operations on March 31 of the current year. ABC Company has the following projected costs:

	April	May	June
Manufacturing costs (1)	$156,800	$195,200	$217,600
Insurance expense (2)	$ 1,000	$ 1,000	$ 1,000
Depreciation expense	$ 2,000	$ 2,000	$ 2,000
Property tax expense (3)	$ 500	$ 500	$ 500

(1) 3/4 of the manufacturing costs are paid for in the month they are incurred and 1/4 are paid in the following month.

(2) Insurance expense is $1,000 a month. However, the insurance expense is paid four times yearly in the first month of the quarter (January, April, July, and October).

(3) Property tax is paid once a year in November.

17. The cash payments for ABC Company in the month of April are:

a. $122,600

b. $123,100

c. $120,600

d. $121,100

18. The cash payments for ABC Company in the month of May are

a. $187,600

b. $149,900

c. $185,600

d. $189,100