Planning Systems, Has Forecast the Following Unit Sales and Production

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 B in quarter 1?

A) 28
B) 32
C) 56
D) 64

Correct Answer:

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