Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: AprilMayJuneManufacturing costs (1)$159,700$196,100$203,300Insurance expense (2)1,1601,1601,160Depreciation expense1,8901,8901,890Property 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 $1,160 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 expected for Finch Company in the month of April area.$119,775b.$141,478c.$123,255d.$159,700

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Asked Dec 7, 2019
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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) $159,700 $196,100 $203,300
Insurance expense (2) 1,160 1,160 1,160
Depreciation expense 1,890 1,890 1,890
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 $1,160 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 expected for Finch Company in the month of April are
a.$119,775
b.$141,478
c.$123,255
d.$159,700
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Expert Answer

Step 1

Calculate manufacturing costs:

Manufacturing costs = $159,700*3/4

Manufacturing costs = $119,775

Calculate insurance expenses...

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