**Howard Temple, Inc. Production Planning for 2020**Howard Temple, Inc., anticipates selling 20,000 pool cues at a price of $12.00 each. The cost structure associated with production is detailed as follows: direct materials cost $2.00 per cue, direct manufacturing labor costs $4.00, and manufacturing overhead amounts to $0.80 per cue. The inventory levels for 2020 are provided in the table below:| Inventory Type | Beginning Inventory | Ending Inventory ||-------------------------------|---------------------|------------------|| Direct Materials | 24,000 units | 24,000 units || Work-in-Process Inventory | 0 units | 0 units || Finished Goods Inventory | 2,000 units | 2,500 units |**Production Requirement Calculation**_Question: How many pool cues need to be produced in 2020?_Option choices:- 22,500 cues- 22,000 cues- 20,500 cues- 19,500 cues**Explanation of Inventory Levels:**- **Direct Materials**: The beginning and ending inventories remain the same at 24,000 units, indicating that the company plans to use exactly what is on hand.- **Work-in-Process Inventory**: Both the beginning and ending inventories are zero, suggesting no semi-finished goods are carried over.- **Finished Goods Inventory**: Began at 2,000 units and needs to be increased to 2,500 units, suggesting an increase in finished goods by 500 units over the year.**Production Planning Strategy:**The company must determine the total production to meet sales demands and adjust inventory as required. Here, the requirement includes fulfilling 20,000 expected sales and increasing finished goods inventory by 500 units (ending inventory 2,500 units - beginning inventory 2,000 units).To find the correct number of pool cues to produce in 2020:- **Production Calculation**: Expected sales (20,000) + Increase in finished goods inventory (500) = 20,500 cuesThus, Howard Temple, Inc. needs to produce **20,500 pool cues** to meet sales expectations and inventory goals for the year 2020.

Given that, Expected number of selling units = 20000 pool cues Opening inventory of finished goods =…

Howard Temple, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2020: Beginning Inventory Ending Inventory Direct materials 24,000 units 24,000 units Work-in-Process Inventory O units O units Finished Goods Inventory 2,000 units 2,500 units How many pool cues need to be produced in 2020? 22,500 cues 22,000 cues 20,500 cucs 19.500 cues

Howard Temple, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2020: Beginning Inventory Ending Inventory Direct materials 24,000 units 24,000 units Work-in-Process Inventory O units O units Finished Goods Inventory 2,000 units 2,500 units How many pool cues need to be produced in 2020? 22,500 cues 22,000 cues 20,500 cucs 19.500 cues

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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