J.J.Johnson has decided to supplement his income by selling beehives.He expects to sell 25,000 hives in 2014.He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory.There is no ending work in process inventory.One beehive holds about 250 bees.The bees are purchased for $4.00 per 1,000 bees.The hives sell for $15.00 each.
-How many beehives would the 2014 production budget,of Johnson,identify as needing to be produced?

Question

J.J.Johnson has decided to supplement his income by selling beehives.He expects to sell 25,000 hives in 2014.He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory.There is no ending work in process inventory.One beehive holds about 250 bees.The bees are purchased for $4.00 per 1,000 bees.The hives sell for $15.00 each. 
-How many beehives would the 2014 production budget,of Johnson,identify as needing to be produced?

Quizplus · Accepted Answer

To determine the number of beehives that Johnson needs to produce in 2014, we need to consider the following:

1. Desired ending inventory: Johnson wants to end the year with at least 2,800 completed hives in inventory.
2. Beginning inventory: Johnson has 2,500 completed hives in inventory from 2013.
3. Expected sales: Johnson expects to sell 25,000 hives in 2014.

Using this information, we can calculate the total number of hives Johnson needs to produce as follows:

Total production = desired ending inventory + expected sales - beginning inventory
Total production = 2,800 + 25,000 - 2,500
Total production = 25,300

Therefore, Johnson needs to produce 25,300 beehives in 2014. Option A) is the correct answer.

JJJohnson Has Decided to Supplement His Income by Selling Beehives