Osage Incorporated has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May June Forecast: July August 5,300 units 7,800 units September 5,900 units October 5,800 units 6,900 units 6,600 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 50% of the next month's sales. It is currently estimated that there will be 2,650 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 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000 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. Required A Complete this question by entering your answers in the tabs below. Purchases Required B Each unit of finished product requires 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000 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. Note: Round your intermediate calculations and final answers to the nearest whole numbers. Answer is complete but not entirely correct. July 71,240 ✓ August 62,288 < Required A Required B > Show less A
Osage Incorporated has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May June Forecast: July August 5,300 units 7,800 units September 5,900 units October 5,800 units 6,900 units 6,600 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 50% of the next month's sales. It is currently estimated that there will be 2,650 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 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000 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. Required A Complete this question by entering your answers in the tabs below. Purchases Required B Each unit of finished product requires 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000 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. Note: Round your intermediate calculations and final answers to the nearest whole numbers. Answer is complete but not entirely correct. July 71,240 ✓ August 62,288 < Required A Required B > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Osage Incorporated has actual sales for May and June and forecast sales for July, August, September, and October as follows:
Actual:
May
June
Forecast:
July
August
5,300 units
7,800 units
September 5,900 units
October
5,800 units
6,900 units
6,600 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 50% of the next month's sales.
It is currently estimated that there will be 2,650 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 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000 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.
Required A
Complete this question by entering your answers in the tabs below.
Purchases
Required B
X Answer is complete but not entirely correct.
Each unit of finished product requires 8 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 80% of the next month's estimated usage. It is currently estimated that 25,000
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.
Note: Round your intermediate calculations and final answers to the nearest whole numbers.
July
71,240
August
62,288
Required A
Required B
Show less ▲
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