Jackson Farms Have Allotted a Certain Amount of Land for Cultivating

question 204

Multiple Choice

Jackson Farms have allotted a certain amount of land for cultivating soybeans, corn, and wheat. Cultivating 1 acre of soybeans requires 4 labor-hours, and cultivating 1 acre of corn or wheat requires 7 labor-hours. The cost of seeds for 1 acre of soybeans is $13, for 1 acre of corn is $20, and for 1 acre of wheat is $7. If all resources are to be used, how many acres of each crop should be cultivated if the following hold? ​
1,500 acres of land are allotted, 9,600 labor-hours are available, and $18,800 is available for seeds.
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• A) 300 acres of soybeans, 500 acres of corn, 700 acres of wheat
• B) 100 acres of soybeans, 600 acres of corn, 700 acres of wheat
• C) 100 acres of soybeans, 500 acres of corn, 800 acres of wheat
• D) 300 acres of soybeans, 600 acres of corn, 800 acres of wheat

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Definitions:

Merchandise Inventory

Goods that a company holds for sale to customers, considered an asset on the balance sheet.

Perpetual Inventory Method

An inventory accounting system that records the sale or purchase of inventory in real-time through the use of computerized point-of-sale systems and enterprise asset management software.

General Journal Entries

General journal entries are the initial records of financial transactions in the double-entry accounting system, entered in the general journal.