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

Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: 5,960 units 6,150 units Actual: May June Forecast: July August September October 5,980 units 6,780 units 5,570 units 5,230 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 55% of the next month's 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. July August September Production b. Each unit of finished product requires 5 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 50% of the next month's estimated usage. It is currently estimated that 25,100 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