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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 5,870 units June

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

Actual:
May 5,870 units
June 6,200 units
Forecast:
July 5,980 units
August 6,770 units
September 5,620 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 55% of the next months sales. It is currently estimated that there will be 3,289 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 5 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 26,200 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.

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