The projected sales budget of CRO Co. for the next 4 months is as follows:

Month	Unit
Jan.	8500
Feb.	8100
Mar.	8200
Apr.	7800

CRO has a policy of keeping finished goods inventory at the end of each month equal to 15% of the next months sales. In order to avoid potential stock-outs of the finished goods, a minimum of 1,200 units must be kept at all times in the warehouse. At the beginning of January, the inventory of finished goods is expected to be 1,200 units.

Requirements

1. Budgeted production for January
2. What quantity of finished goods inventory is expected to be on hand at the end of the first quarter?