Finch Company Began Its Operations on March 31 of the Current

question 127

Multiple Choice

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 for Finch Company expected in the month of June are

• A) $215,500
• B) $188,800
• C) $214,000
• D) $212,000