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

Actual:May 5,890 units

June 6,270 units

Forecast:July 5,920 units

August6,830 units

September 5,600 units

October 5,350 units

Required:

a.The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 50% of the next month's sales. It is currently estimated that there will be 2,960 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.

b.Each unit of finished product requires 8 pounds of raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 60% of the next month's 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.