Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management repor that...
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Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management repor that 5,000 snowboards and 6,000 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 150,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,500 snowboards and 4,000 pounds of carbon fiber in inventory. Carbon fiber costs $15 per pound. Each snowboard requires 0.5 hour of direct labor at $20 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,782,000 for the quarter. Problem 22-1A (Static) Part 1 Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Add: Desired ending inventory units Less: Beginning inventory units Budgeted sales units Third Quarter Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management repor that 5,000 snowboards and 6,000 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 150,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,500 snowboards and 4,000 pounds of carbon fiber in inventory. Carbon fiber costs $15 per pound. Each snowboard requires 0.5 hour of direct labor at $20 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,782,000 for the quarter. Problem 22-1A (Static) Part 1 Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Add: Desired ending inventory units Less: Beginning inventory units Budgeted sales units Third Quarter
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Heres the production budget for the third quarter for Black Diamond Company BLACK DIAMOND COMPANY ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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