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

Question
Asked Dec 7, 2019
4 views
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
check_circle

Expert Answer

Step 1

Calculate manufacturing costs for the month of June

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

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: mоmmg uprаruma camештаuо The following data (in thousands) were taken from recent financial statemen...

A: a. Calculate the working capital for year 2 and year 1

question_answer

Q: Question 2 --/1 View Policies Current Attempt in Progress Waterway Industries had average operating ...

A: ROI is a ratio used to measure the efficiency of an investment. It measures the return which a compa...

question_answer

Q: The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Un...

A:  The following journals will be posted :  ( please see attached ) 

question_answer

Q: The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expe...

A: Internal Rate of ReturnInternal Rate of Return is the return where the sum of discounted cash inflow...

question_answer

Q: Botanic Choice sells natural supplements to customers with an unconditional sales return if they are...

A: Calculation of expected sales return: Calculation of cost of goods returned:

question_answer

Q: The Rainy Division of Seattle Corporation reported the following results from the past year. Shareho...

A: Determine desired operating income.

question_answer

Q: The following balances were taken from the books of Schimank Corp. on December 31, 2020:    ...

A: The income statement is a financial statement that represents the financial performance of the compa...

question_answer

Q: Relative Sales Value Method: -- Apple Corporation purchased a track of unimproved land for $610,000....

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a company...

question_answer

Q: The Monarch Division of Allgood Corporation has a current ROI of 12 percent. The company target ROI ...

A: Return on Investment is a financial ratio that represents the value of return or gain earned on an i...