16) SHOW WORK. Aloan Co. provides the following sales forecast for the next three months:

	January		February		March
Sales units	3,000		4,200		5,000

The company wants to end each month with ending finished goods inventory equal to 10% of the next month's sales. Finished goods inventory on December 31 is 300 units. The budgeted production units for February are:

A) 5,000 units.

B) 4,200 units.

C) 4,700 units.

D) 4,120 units.

E) 4,280 units.

17) SHOW WORK. Flack Corporation, a merchandiser, provides the following information for its December budgeting process:

The November 30 inventory was 1,800 units.

Budgeted sales for December are 4,000 units.

Desired December 31 inventory is 2,840 units.

Budgeted purchases are:

A) 5,040 units.

B) 1,240 units.

C) 6,840 units.

D) 4,000 units.

E) 5,800 units.