Finch Company began its operations on March 31 of the current year. Finch Co. has the following projected costs: (1) 3/4 of the manufacturing costs are paid for in the month they are incurred. 1/4 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 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 Co. has the following projected costs:  (1) 3/4 of the manufacturing costs are paid for in the month they are incurred. 1/4 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 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 Co. has the following projected costs:  (1) 3/4 of the manufacturing costs are paid for in the month they are incurred. 1/4 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 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