Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs * $157,700 $198,300 $201,000 Insurance expense* * 870 870 870 Depreciation expense 1,870 1,870 1,870 Property tax expense** * 520 520 520 * 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 $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). **Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are a.$39,425 b.$148,725 c.$188,150 d.$227,575

Question

Hailey Morgan

Business

10 July, 16:28

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs * $157,700 $198,300 $201,000 Insurance expense* * 870 870 870 Depreciation expense 1,870 1,870 1,870 Property tax expense** * 520 520 520 * 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 $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). **Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are a.$39,425 b.$148,725 c.$188,150 d.$227,575

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Answers (1)

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Emery Howe · Answer 1

c.$188,150

Explanation:

April May June

Manufacturing costs * $157,700 $198,300 $201,000

Payment April Costs $118.275 $39,425

Payment May Costs 148,725 49,575

Cash Payments $ 188,150

None other costs will be paid in the month Of May.

*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 $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). * **Property tax is paid once a year in November.