Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: (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 $1,000 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 May are
A) $185,600
B) $149,900
C) $187,600
D) $189,100

Question

Finch Company began its operations on March 31 of the current year.  Finch has the following projected costs:  (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 $1,000 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 May are
A) $185,600 
B) $149,900 
C) $187,600 
D) $189,100

Quizplus · Accepted Answer

The Answer of Finch Company began its operations on March 31 of the current year.  Finch has the following projected costs:  (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 $1,000 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 May are
A) $185,600 
B) $149,900 
C) $187,600 
D) $189,100

Finch Company Began Its Operations on March 31 of the Current