Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows:

Actual:
May	5,930	units
June	6,240	units
Forecast:
July	5,910	units
August	6,890	units
September	5,630	units
October	5,210	units

Required:

a. The firms policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next months sales. It is currently estimated that there will be 4,137 units on hand at the end of June. Calculate the number of units to be produced in each of the months of July, August, and September.

Production: July_____ August___________ September_________

b. Each unit of finished product requires 6 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 60% of the next months estimated usage. It is currently estimated that 26,800 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.

Purchases: July__________ August____________