River City Promotions sells custom crested jackets, which it purchases from its

suppliers for $$20$ per unit. To ensure it always has enough stock on hand to

meet upcoming needs, it requires an ending inventory for any period to be

equal to $30\%$ of the next period's demand.

Budgeted sales $($in units$)$ for the year ended December $31,20$X$1$ are as follows:

Q$1-12,200$

Q$2-6,700$

Q$3-15,600$

Q$4-17,200$

Assuming that inventory on hand at the beginning of each period matches

that planned for in the policy above, what would be the cost of purchases for

Q$2?$

a$.$ $$166,800$

b$.$ $$227,600$

c$.$ $$300,800$

d$.$ $$187,400$