What is the production budgeted for the second quarter? Company policy is to have a finished goods inventory at the end of each quarter equal to 18 percent of the next quarter's sales. The sales budget for Your Company's projected quarterly sales for next years as follows: Quarter 1: 44,000 units Quarter 2: 35,000 units Quarter 3: 42,000 units Quarter 4: 55,000 units 44,340 33,740 36,260 39,660