Question

Tannwin Co. sells a new product called Accountomatic and has predicted the following sales for the first four months of the current year:


Jan. Feb. March April
Sales in units 1,700 1,900 2,100 1,600

Ending inventory for each month should be 20% of the next month's sales, and the prior December 31 inventory is consistent with that policy. How many units should be purchased in the first quarter of the year?
A. 5,100
B. 5,680
C. 6,300
D. 6,000
E. 5,700

Answer

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