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Osage Inc. has actual sales for May and June and forecast sales for July August September, and October as follows: 5,910 unit
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Answer #1
Production Budget
July August September
Expected unit sales 5970 6840 5580
Add Desired ending finished goods Inventory 5130 4185 3997.5
Total production Required 11100 11025 9577.5
Less Beginning finished goods inventory 4478 5130 4185
No of Unit to be Produced 6622 5895 5392.5
Purchase budget
July August
No of Unit to be produced 6622 5895
Pound Required per unit 4 4
Estimated Usage of Raw Material 26488 23580
Add Desired ending Raw material 11790 10785
Total Material Required 38278 34365
Less Beginning Raw Material 26300 11790
The number of pounds of raw materials to be purchased 11978 22575
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