Finch Company began its operations on March 31 of the current year. Finch has the...
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Accounting
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April
May
June
Manufacturing costs (1)
$158,500
$195,700
$209,900
Insurance expense (2)
1,200
1,200
1,200
Depreciation expense
2,040
2,040
2,040
Property tax expense (3)
410
410
410
(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 $1,200 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
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