Required information Problem 7-1A (Static) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [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 5,000 snowboards and 6,000 pounds of carbon fiber are in Inventory at the beginning of the third quarter, and that 150,000 snowboards are budgeted to be sold during the third quarter Management wants to end the third quarter with 3,500 snowboards and 4,000 pounds of carbon fiber in inventory Carbon fiber costs $15 per pound. Each snowboard requires 0.5 hour of direct labor at $20 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,782,000 for the quarter. Problem 7-1A (Static) Part 1 Required: 1. Prepare the production budget for the third quarter. Hint Desired ending inventory units are given. Answer is complete but not entirely correct. BLACK DIAMOND COMPANY Production Budget (in units)) Third Quarter Budgeted sales units 150,000 Add Desired ending inventory units 3,500 Total required units 153,500 Less: Beginning inventory units 5,000 Units to produce 158,500