1. Molina Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totaled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales.

The planned ending inventory of finished goods for May is

1. 5,600 units.
2. 4,000 units.
3. 5,000 units.
4. 3,200 units.

2. Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A Scheduled production of books for January and February is 1,000 and 1,200 units, respectively. Januarys beginning inventory is 4,000 units of A1 and 30 units of A Januarys ending inventory is planned to be 3,500 units of A1 and 45 units of A

Based on this information, the number of units of A1 that needs to be purchased by Alana during January is

1. 9,500 units.
2. 10,000 units.
3. 1,000 units.
4. 10,500 units.