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 June are:
A) $215,500
B) $188,800
C) $214,000
D) $212,000

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 June are:
A) $215,500 
B) $188,800 
C) $214,000 
D) $212,000

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 June are:
A) $215,500 
B) $188,800 
C) $214,000 
D) $212,000

Finch Company Began Its Operations on March 31 of the Current