22) Which of the following statements is true?
1. Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period.
2. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then adding the beginning inventory.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both statements are true.
D) Neither statement is true.
23) Grind Corporation makes and sells custom wrenches. Each unit of Product requires 4 hours of direct labor at the rate of $13.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 39,200 units of Product in June. The finished goods inventories on June 1 and June 30 are budgeted to be 200 and 100 units, respectively. Budgeted direct labor costs for June would be:
A) $2,111,400
B) $1,974,175
C) $530,550
D) $529,200
