Kohlman Company Began Its Operations on March 31 of the Current

question 53

Multiple Choice

Kohlman Company began its operations on March 31 of the current year.Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June.Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs.Insurance was paid on March 31, and property taxes will be paid in November.Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred with the balance to be paid in the following month. The cash payments for manufacturing in the month of May are:

• A) $185,600.
• B) $156,800.
• C) $124,800.
• D) $146,400.

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Definitions:

B2B Buying Process

The steps that businesses go through when purchasing products or services from another business, from recognition of need to the final purchase.

B2C Buying Process

The series of steps that a consumer goes through when deciding to purchase a product or service from a business directly.

Order Specification

Detailed information provided by customers regarding the requirements, characteristics, and quantities of the products they wish to purchase.

Prices

The amount of money required to purchase goods or services.