Solution for these two question, please see the following attach file

1. Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: A. $138,000 B. $133,500 C. $120,000 D. $103,500 1. Over an extended period of time in which the final ending inventories are zero, the accumulated net operating income figures reported under absorption costing will be: A. greater than those reported under variable costing. B. less than those reported under variable costing. C. the same as those reported under variable costing. D. higher or lower since no generalization can be made