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

question 93

Multiple Choice

Tannwin Co.sells a new product called Accountomatic 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 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

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Definitions:

Mobiles

Portable electronic devices with connectivity capabilities, such as smartphones and tablets, used for communication and information access.

Welfare Benefits

Government-provided support to individuals or families, especially those with low incomes, in the form of financial aid or services.

Gross Private Domestic Investment

The total capital investment in an economy by private sector entities, excluding government spending.

Durable Goods

Goods not for immediate consumption that can be used over a period of time, such as appliances, cars, and furniture.