Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,200 $195,700 $219,100 Insurance expense"" 870 870 870 Depreciation expense 2,100 2,100 2,100 Property tax expense"* 580 580 580 "Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. e *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 Oa. $146,775 Ob. $39,800 Oc. $186,575 Od. $226,375

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,200 $195,700 $219,100 Insurance expense"" 870 870 870 Depreciation expense 2,100 2,100 2,100 Property tax expense"* 580 580 580 "Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. e *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 Oa. $146,775 Ob. $39,800 Oc. $186,575 Od. $226,375

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....

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