Kidder Company began its operations on March 31 of the current year. Projected m

Question

Kidder Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $159,839, $192,418, and $216,201, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $26,129 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. What are the cash payments for manufacturing in the month of June? Select the correct answer. $100,283 $184,126 $158,144 $159,839

Explanation / Answer

Month April May June Manufacturing Costs         159,280       197,877       208,903 Non Cash Depreciation, Prepaid Insurance And Accrued Property Tax amts           28,612          28,612          28,612 Cash Manufacturing Costs         130,668       169,265       180,291 Cash Payments Cash Manufacturing Costs of April           98,001          32,667 Cash Manufacturing Costs of May       126,949          42,316 Cash Manufacturing Costs of June       135,218 Total Cash Payments           98,001       159,616       177,535 Total Cash Payments in May =$159,616

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