Black Diamond Company produces snow skis. Each ski requires $2$ pounds of carbon fiber. The company's management predicts that $5,000$ skis and $6,000$ pounds of carbon fiber will be in inventory on June $30$ of the current year and that $150,000$ skis will be sold during the next $($third$)$ quarter. A set of two skis sells for $$300.$ Management wants to end the third quarter with $3,500$ skis and $4,000$ pounds of carbon fiber in inventory. Carbon fiber can be purchased for $$15$ per pound. Each ski requires $0\mathrm{.}5$ hours of direct labor at $$20$ per hour. Variable overhead is applied at the rate of $$8$ per direct labor hour. The company budgets fixed overhead of $$1,782,000$ for the quarter.

Required

Prepare the third$-$quarter production budget for skis.

Prepare the third$-$quarter direct materials $($carbon fiber$)$ budget; include the dollar cost of purchases.

Prepare the direct labor budget for the third quarter.

Prepare the factory overhead budget for the third quarter.

PROBLEM SET A

Problem $22-1$A

Manufacturing:

Preparing production and manufacturing budgets

C$2$ P$1$

Check $(1)$ Units manuf., $148,500$;

$(2)$ Cost of carbon

fiber purchases, $$1,125,000$