Question
Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,810 units June
Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,810 units June 6,180 units Forecast: July 5,920 units August 6,850 units September 5,680 units October 5,330 units Each unit of finished product requires 4 pounds of raw materials. The firms policy is to have raw material inventory on hand at the end of each month that is equal to 50% of the next months estimated usage. It is currently estimated that 25,300 pounds of raw materials will be on hand at the end of June. Calculate the number of pounds of raw materials to be purchased in each of the months of July and August.
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