Required Information [The following Information applies to the questions displayed below.) Black Diamond Company produces snow skls. Each skl requires 3 pounds of carbon fiber. The company's management predicts that 6,800 skls and 7,800 pounds of carbon fiber will be in Inventory on June 30 of the current year and that 168,000 skis will be sold during the next (third) quarter. A set of two skis sells for $480. Management wants to end the third quarter with 5,300 skis and 5,800 pounds of carbon fiber In Inventory. Carbon fiber can be purchased for $17 per ach skl requires 0.5 hours of direct labor at $22 per hour. Variable overhead is applied at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,800,000 for the quarter. Required: 1. Prepare the third-quarter production budget for skis. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Required units of available production Units to be manufactured Required Information [The following Information applies to the questions displayed below.) Black Diamond Company produces snow skls. Each skl requires 3 pounds of carbon fiber. The company's management predicts that 6,800 skls and 7,800 pounds of carbon fiber will be in Inventory on June 30 of the current year and that 168,000 skis will be sold during the next (third quarter. A set of two skls sells for $480. Management wants to end the third quarter with 5,300 skis and 5,800 pounds of carbon fiber In Inventory. Carbon fiber can be purchased for $17 per pound. Each skl requires 0.5 hours of direct labor at $22 per hour. Varlable overhead is applied at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,800,000 for the quarter. 2. Prepare the third-quarter direct materials (carbon fiber) budget, Include the dollar cost of purchases. 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