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Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,900 units June
Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows:
Actual: | ||
May | 5,900 | units |
June | 6,170 | units |
Forecast: | ||
July | 6,080 | units |
August | 6,830 | units |
September | 5,630 | units |
October | 5,390 | 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 4,256 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.
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