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*
$159,000
$197,000
$200,000
Insurance expense**
1,100
1,100
1,100
Depreciation expense
2,020
2,020
2,020
Property tax expense***
440
440
440
*Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,100 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 for Finch Company expected in the month of June are
a.$49,250
b.$199,250
c.$150,000
d.$248,500
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