Exercise 5-12 Your answer is partially correct. Try again. Waterway manufactures competition stunt kites. In November, Jerry Box 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. Budgeted unit Sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January February March Quarter 24,800 36,600 34,600 96,000 7,320 6,920 2,730 2,730 32,120 43,520 37,330 98,730 4,960 7,320 6,920 4,960 27,160 36,200 30,410 93,770 Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,760 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. (a) Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) January February March Quarter Budgeted unit sales + 24800 36600 34600 96000 Budgeted ending Inventory 9150 8650 3413 3413 Total units required 33950 45250 38013 99413 Beginning inventory 9150 8650 X Budgeted production Click if you would like to Show Work for this question: Open Show Work