G.G. Johnson has decided to supplement his income by selling beehives. He expects to sell 25,000 hives in 20X9. He ended 20X8 with 2,500 completed hives in inventory and would like to complete operations in 20X9 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.
A. How many beehives would the 20X9 production budget identify as needing to be produced? Please show work. a)25,300 b)25,000 c) 30,300 d) 24,700
B. What would be the total of the 20X9 period sales budget? Please show work. a)$378,000 b)$375,000 c) $379,500 d) $376,500
C. What would be the yearly total on the direct materials purchases budget for bee purchases? (Assume for this question that 40,000 beehines will be produced.) Please show work. a)$44,000 b) $16,000 c) $64,000 d) $40,000
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