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

Actual:
May	5,870	units
June	6,220	units
Forecast:
July	5,960	units
August	6,750	units
September	5,600	units
October	5,360	units

Required: a. The firms policy is to have finished goods inventory on hand at the end of the month that is equal to 80% of the next months sales. It is currently estimated that there will be 4,768 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.

	July	August	September
Production

b. Each unit of finished product requires 7 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 45% of the next months estimated usage. It is currently estimated that 25,700 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.

	July	August
Purchases