Osage Inc. has actual sales for May and June and forecast sales for July, August, September,...

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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 5,830 units June 6,280 units Forecast: July 5,930 units August 6,870 units September 5,590 units October 5,290 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 65% of the next month's sales. It is currently estimated that there will be 3,854 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 b. Each unit of finished product requires 4 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 60% of the next month's estimated usage. It is currently estimated that 25,300 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 Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,830 units June 6,280 units Forecast: July 5,930 units August 6,870 units September 5,590 units October 5,290 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 65% of the next month's sales. It is currently estimated that there will be 3,854 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 b. Each unit of finished product requires 4 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 60% of the next month's estimated usage. It is currently estimated that 25,300 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

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Production in July August and September Part a 1 Calculate Desired Ending Inventory for Each Month July Desired Ending Inventory 65 August Sales Forec... View the full answer