Osage, Inc, has actual sales for May and June and forecast sales for July, Augus

Question

Osage, Inc, has actual sales for May and June and forecast sales for July, August, September, and October as follows May June 5,860 units 6.230 units 6 820 units 5 610 units 5320 units a The fin s policy s 10 have nished goods me toy on hand at the end of the month tat is equal to 55% ot the next month's saes Itiscurrenty estr ated that mere wa be 3 300 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 ach unt of finished product requires 4 pounds of rav/ materals The tmspicy istonave raw material inventory on hand at the end of each month that is equal to 60% of the next estimated usage. It is currently estimated that 26,700 pounds of raw materials will be on hand at the end of June. Calculate the number of pounds of raw mateniais to be purchased in each of he months of July and August O Type here to search D 9

Explanation / Answer

Production budget :

Purchase budget :

July August september Sales unit 6000 6820 5610 Add: Desired ending inventory 3751 3086 2926 Total 9751 9906 8536 Less:Beginning inventory -3300 -3751 -3086 Production units 6451 6155 5450

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