Standby letters of credit A. are a promise by a large depositor to provide additional funds to a bank should the bank face an un
1 answer:
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Answer:
The cash payments expected for Finch Company in the month of May is $185,600
Thus, the option a is correct.
Explanation:
For computing the cash payment for may month. The following things should be recognized which is explained below:
1. Manufacturing expense : In manufacturing expense, is incurred for particular month and rest
is for following moth.
That means, $195200 × 3÷4 = $146,400 and $156,800 × 1 ÷ 4 = 39,200
So, the total would be $146,400 + 39,200 = $185,600
2. As insurance expenses would not be considered because the information is not given.
3. As property tax is paid in November, so it would not be taken for may month.
Therefore, The cash payments expected for Finch Company in the month of May is $185,600
Thus, the option a is correct.