Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] Black Diamond Company produces snow skis. Each ski requires 3 pounds

Required information Skip to question [The following information applies to the questions displayed below.]

Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The companys management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter.

Required: 1. Prepare the third-quarter production budget for skis.

image text in transcribed

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

image text in transcribed

3. Prepare the direct labor budget for the third quarter.

image text in transcribed

4. Prepare the factory overhead budget for the third quarter.

image text in transcribed

BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Budgeted ending inventory (units) Budgeted units sales for quarter Required units of available production Budgeted beginning inventory (units) Units to be manufactured BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Budgeted production Materials needed for production (lbs.) Total materials requirements (lbs.) Direct materials to be purchased (lbs.) Budgeted cost of direct materials purchases BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to be produced Total labor hours needed Budgeted direct labor cost BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Total labor hours needed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Understanding Business Processes

Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer

3rd Edition

1742165559, 978-1742165554

More Books

Students also viewed these Accounting questions

Question

Describe the goal of cognitive psychotherapy.

Answered: 1 week ago

Question

What is the meaning and definition of E-Business?

Answered: 1 week ago