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Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows. Artual May une 5,900 unts
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows. Artual May une 5,900 unts ,250 unls Forecast July August 6,030 units 6,850 units 5,650 unts 5,350 units October Required: a. The firm's policy s to have finished goods inventory on hand at the end o the month that is equal to 80% o the next month's sales t is currently estimated that there will be 4824 units on hand at he end o June Calculate the number of units to be Production b. Each unit o finished product e res 7 pounds of law ma rials. The firms po y s o have raw malerial im entry on hand at he end 0 each month hal s equal to 65% o the ne 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 's est ma ed usage t curent es mate at 26.400 pounds mo Purchases
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