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 September October 6,000 units 6,100 units 5,100 units 7,000 units 5,700 units 5,200 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 2,550 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 5.5 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 80% of the next month's estimated usage. It is currently estimated that 26,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Production 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 2,550 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. Note: Do not round your intermediate calculations. Round your final answers to the nearest whole numbers. July August September Show less
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 September October 6,000 units 6,100 units 5,100 units 7,000 units 5,700 units 5,200 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 2,550 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 5.5 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 80% of the next month's estimated usage. It is currently estimated that 26,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Production 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 2,550 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. Note: Do not round your intermediate calculations. Round your final answers to the nearest whole numbers. July August September Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give image format
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
September
October
6,000 units
6,100 units
5,100 units
7,000 units
5,700 units
5,200 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 2,550 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 5.5 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 80% of the next month's estimated usage. It is currently estimated that 26,500 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.
Complete this question by entering your answers in the tabs below.
Required A Required B
Production
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 2,550 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.
Note: Do not round your intermediate calculations. Round your final answers to the nearest whole numbers.
July
August
September
Show less
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
Each unit of finished product requires 5.5 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 80% of the next month's estimated usage. It is currently estimated that 26,500
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.
Purchases
July
August
Show less
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