Waterway manufactures competition stunt kites. In November, Gary King 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 31,000 34,000 108,000 Desired ending inventory 6,200 6,800 2,400 2,400 Kites needed 49.200 37,800 36,400 110,400 Less beginning inventory Budgeted production 8,600 6,200 6,800 8,600 40,600 31,600 29.600 101,800 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 3,000 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 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. Budgeted ending inventory Beginning inventory Total units required Budgeted production Budgeted unit sales January February March Quarter