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Need help please. Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company's management predicts that 5,400 skis and

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Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company's management predicts that 5,400 skis and 6,400 pounds of carbon fiber will be in inventory on June 30 of the current year and that 154,000 skis will be sold during the next (third) quarter. A set of two skis sells for $340. Management wants to end the third quarter with 3,900 skis and 4,400 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $19 per pound. Each ski requires 0.5 hours of direct labor at $24 per hour. Variable overhead is applied at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,786,000 for the quarter. 1. Prepare the third-quarter production budget for skis. Prepare the third-quarter production budget for skis. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Budgeted ending inventory (skis) Add budgeted units sales for quarter Required units available for production Deduct budgeted beginning inventory (skis) Units to be manufactured 2. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases. Prepare the third-quarter production budget for skis. BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Budgeted production other option could be here *** see right Materials (carbon fiber) needed for production Add budgeted ending inventory (carbon fiber) Total materials (carbon fiber) requirements Deduct budgeted beginning inventory (carbon fiber) Units of materials (carbon fiber) to be purchased Materials price per pound Total cost of direct materials purchases

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