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! Required information Problem 2 0 - 1 A ( Algo ) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P 1 [ The
Required information
Problem A Algo Manufacturing: Preparing production, materials, labor, and overhead budgets LO P
The following information applies to the questions displayed below.
Black Diamond Company produces snowboards. Each snowboard requires pounds of carbon fiber. Management reports that snowboards and pounds of carbon fiber are in inventory at the beginning of the third quarter, and that snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with snowboards and pounds of carbon fiber in inventory. Carbon fiber costs $ per pound. Each snowboard requires hour of direct labor at $ per hour. Variable overhead is budgeted at the rate of $ per direct labor hour. The company budgets fixed overhead of $ for the quarter.
Problem A Algo Part
Required:
Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.
tableBLACK DIAMOND COMPANYProduction Budget in unitsThird QuarterBudgeted sales units,Less: Beginning inventory units,Total required units,Add: Desired ending inventory units,Units to produce,
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