Manufacturing costs* Insurance expense*** Depreciation expense Property tax expense*** $159,000 $194,000 $216,000 840 O 2,020 520 840 2,020 520 840 2,020 520 *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 $840 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 O a. $210,500 O b. $48,500 c. $259,000 O d. $162,000
Manufacturing costs* Insurance expense*** Depreciation expense Property tax expense*** $159,000 $194,000 $216,000 840 O 2,020 520 840 2,020 520 840 2,020 520 *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 $840 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 O a. $210,500 O b. $48,500 c. $259,000 O d. $162,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April
May
$159,000 $194,000
Manufacturing costs*
Insurance expense**
Depreciation expense
Property tax expense***
840
O c. $259,000
O d. $162,000
2,020
520
840
2,020
520
June
$216,000
840
2,020
520
*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 $840 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
O a. $210,500
O b. $48,500
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