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Planning Systems, Has Forecast the Following Unit Sales and Production

Question 86

Multiple Choice

Planning Systems, has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
What is the ending inventory for material A for quarter 2?


A) 24
B) 28
C) 30
D) 100

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