Colorado Corporation has the following sales forecasts for the upcoming quarter:

July, 4,000 units; August, 4,800 units; September, 5,600 units

1- Sales totaled 3,200 units in June. Finished goods inventory in June was 800 units. Finished goods inventory levels at the end of the month are estimated to equal 30 percent of next month's planned sales.

Forecast production for Colorado Corporation for July is

a.5,440 units.
b.3,360 units.
c.1,440 units.
d.4,640 units.

2- Normal spoilage costs are included in overhead and are applied to all good units produced.
True

False