a. Montenegro Companys Sales budget shows the following expected sales for the following year:

Quarter

Units

First

120,000.00

Second

160,000.00

Third

90,000.00

Fourth

110,000.00

Total

480,000.00

b. The inventory for Dec 31 of the prior year was budgeted at 36,000 units.

c. The quantity of finished goods inventory at the end of each quarter is to equal 30% of the next quarters budgeted unit sales.

Question: How many units should be produced during the first quarter?