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Required information

Problem $20-1$A $($Algo$)$ Manufacturing: Preparing production, materials, labor, and overhead budgets LO P$1$

$[$The following information applies to the questions displayed below.$]$

Black Diamond Company produces snowboards. Each snowboard requires $1$ pounds of carbon fiber. Management reports that $5,900$ snowboards and $6,900$ pounds of carbon fiber are in inventory at the beginning of the third quarter, and that $159,000$ snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with $4,400$ snowboards and $4,900$ pounds of carbon fiber in inventory. Carbon fiber costs $$24$ per pound. Each snowboard requires $0\mathrm{.}6$ hour of direct labor at $$29$ per hour. Variable overhead is budgeted at the rate of $$17$ per direct labor hour. The company budgets fixed overhead of $$1,791,000$ for the quarter.

Problem $20-1$A $($Algo$)$ Part $1$

Required:

Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.

$\backslash$table$[[$BLACK DIAMOND COMPANY$],[$Production Budget $($in units$),],[,$Third Quarter$],[$Budgeted sales units,$157,500],[$Less: Beginning inventory units,$4,400],[$Total required units,$161,900],[$Add: Desired ending inventory units,$163,400],[$Units to produce,$]]$