Ecology Co Ending Inventory for Each Month Should Be 20% of the the Following

question 9

Multiple Choice

Ecology Co.sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: $\begin{array}{lclrl}& \text { Jan. } & \text { Feb. } & \text { March } & \text { April } \\\text { Sales in units } &1,700 & 1,900 & 2,100 & 1,600\end{array}$ Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy.How many units should be purchased in February?

• A)1,860
• B)1,900
• C)1,940
• D)1,980
• E)2,320

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