43 t 2 of 3 Required information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management reports that 5,100 snowboards and 6,100 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 151,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,600 snowboards and 4,100 pounds of carbon fiber in inventory. Carbon fiber costs $16 per pound. Each snowboard requires 0.5 hour of direct labor at $21 per hour. Variable overhead is budgeted at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,783,000 for the quarter. 54:39 2. Prepare the direct materials budget for the third quarter. Units to produce BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter 149,500 units Materials needed for production (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases + $ 3.00 per pound < Prev 43 44 of 45 Next >