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  • Mar 29, 2013, 06:35 AM
    1specialperson
    How do I calculate production?
    Osage Inc.. Has actual sales for June and July and forecast sales for August, September, October, and November as follows:


    Actual:
    June 4,150 units
    July 4,350 units
    Forecasted:
    August 4,200 units
    September 4,950 units
    October 3,900 units
    November 3,700 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 70% of the next month’s sales. It is currently estimated that there will be 3,300 units on hand at the end of July. Calculate the number of units to be produced in each of the months of August, September, and October.

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