Mallory Company expects to sell 120 units in the first quarter, and 60 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 30% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.