#6

Required Information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber Management reports that 5,400 snowboards and 6,400 pounds of carbon fiber are in Inventory at the beginning of the third quarter, and that 154.000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,900 snowboards and 4,400 pounds of carbon fiber in Inventory. Carbon fiber costs $19 per pound. Each snowboard requires 0.5 hour of direct labor at $24 per hour. Variable overhead is budgeted at the rate of $12 per direct labor hour The company budgets fixed overhead of $1,786,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint Desired ending Inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Total required units Units to produce Third Quarter Required Information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 5,400 snowboards and 6,400 pounds of carbon fiber are in Inventory at the beginning of the third quarter, and that 154,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,900 snowboards and 4,400 pounds of carbon fiber In Inventory. Carbon fiber costs $19 per pound. Each snowboard requires 0.5 hour of direct labor at $24 per hour. Varlable overhead is budgeted at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,786,000 for the quarter. 2. Prepare the direct materials budget for the third quarter. Units to produce BLACK DIAMOND COMPANY Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases Third Quarter PRICITA SEMINA