JJ Johnson plans to sell 25,000 beehives in 2014. He started 2013 with 2,500 hives and wants to end 2014 with at least 2,800 hives in inventory. To meet his sales goal of 25,000 hives and end with 2,800 hives, his 2014 production budget would need to identify producing 25,300 beehives.

1. JJ 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. On beehive holds about 250 bees. The bees are purchased for $4 per
1,000 bees. The hives sell for $15 each. How many beehives would the 2014 production budget,
of Johns, identify as needing to be produced?
JJ 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. On beehive holds about 250 bees. The bees are purchased for $4 per
1,000 bees. The hives sell for $15 each. How many beehives would the 2014 production budget,
of Johns, identify as needing to be produced?
Solution
Hi,
Please find the detailed answer as follows:
Expected Units = 2800 + 25000 - 2500 = $25300
Answer is $25300
Thanks.