Bramble manufactures competition stunt kites. In November, Kevin Hall prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 43,000 30,000 33,000 106,000 Desired ending inventory 6,000 6.600 2,400 2,400 Kites needed 49,000 36.600 35,400 108,400 Less beginning inventory 8,600 6,000 6,600 8,600 Budgeted production 40,400 30,600 28,800 99,800 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 6,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 10% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January 43000 3000 46000 February 30000 3300 33300 March 33000 2400 Quarter 106000 6000 i 3000 i 3300 i 6000 i 40000 30300