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

Actual: May 5,860 units

June 6,190 units Forecast:

July 6,000 units

August 6,810 units

September 5,530 units

October 5,280 units

Required:

a. The firms policy is to have finished goods inventory on hand at the end of the month that is equal to 60% of the next months sales. It is currently estimated that there will be 3,600 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 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 55% of the next months estimated usage. It is currently estimated that 25,500 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.