# Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: AprilMayJuneManufacturing costs (1)\$157,000\$198,000\$204,000Insurance expense (2)1,0401,0401,040Depreciation expense2,1302,1302,130Property tax expense (3)450450450(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 \$1,040 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 area.\$49,500b.\$252,000c.\$153,000d.\$202,500

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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) \$157,000 \$198,000 \$204,000 Insurance expense (2) 1,040 1,040 1,040 Depreciation expense 2,130 2,130 2,130 Property tax expense (3) 450 450 450

(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 \$1,040 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
a.\$49,500
b.\$252,000
c.\$153,000
d.\$202,500
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Step 1

Calculate manufacturing costs for the month of June

Manufacturing costs = (\$204,000*3/4) + (...

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