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Article Summary According to the Department of Agriculture, Net Farm Income in Income

question 68

Multiple Choice

Article Summary
According to the Department of Agriculture, net farm income in 2017 will rise from $61.5 billion in 2016 to $63.4 billion in 2017, a modest 3.1 percent increase but also the first increase since 2013. Much of the increase came from the sales of grain inventory, along with increased revenue from milk and livestock. The net income for 2017 is still only about half of its peak level, and according to agricultural economist David Widmar, income closer to $72 billion would be a sign of an improving farm economy.
Source: Alan Bjerga and Jeff Wilson, "First U.S. Farm-Income Gain in Four Years Signals Hope of Bottom," bloomberg.com, August 30, 2017.
-Refer to the Article Summary.Assume that after the slight increase in U.S.farm income in 2017, farmers are expected to break even in 2018.This means that at the quantity being produced in 2018,

Definitions:

Beginning Finished Goods

The inventory of finished products available for sale at the start of an accounting period.

Ending Finished Goods

The value of goods available for sale at the end of an accounting period.

Production Budget

An estimate of the total cost of production, including materials, labor, and overhead, for a specific period.

Beginning Finished Goods

Refers to the inventory of completed products that a company has on hand at the start of an accounting period.