Each unit of finished product requires 5 pounds of raw materials. The firms' 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 the 13,000 pounds of raw materials will be on hand at the end of July. Calculate the number of punds of raw materails to be purchased in each of the months of August and September.
- Actual
- June 4,150 units
- July 4,350 units
- Forecast
- August 4,200 units
- September 4,900 units
- October 3,900 units
- November 3,700 units