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Problem 1: The number of units to be produced in a period can be determined by adding the expected sales to the beginning inventory and then deducting the desired ending inventory.
Group of answer choices
True
False
Problem 2: Lookout Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience indicates that none of the sales on account will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be:
Option 1: $147,960
Option 2: $197,880
Option 3: $184,760
Option 4: $169,800
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