Required information (The following information applies to the questions displayed below.) Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company's management predicts that 5,100 skis and 6,100 pounds of carbon fiber will be in inventory on June 30 of the current year and that 151,000 skis will be sold during the next (third) quarter. A set of two skis sells for $310. Management wants to end the third quarter with 3,600 skis and 4,100 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $16 per pound. Each ski requires 0.5 hours of direct labor at $21 per hour. Variable overhead is applied at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,783,000 for the quarter. Required: 1. Prepare the third quarter production budget for skis. 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 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 3. Prepare the direct labor budget for the third quarter. BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to be produced Total labor hours needed Budgeted direct labor cost Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Total labor hours needed Required information [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September $62,500 $78,500 $ 49,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,460 4,340 20,500 13,740 3,660 17,100 14,060 3,740 17,500 Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,300 in accounts receivable; and a $5,300 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,300 per month), and rent ($6,800 per month). 1. Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September 1. Prepare a cash receipts budget for July, August, and September BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less: ending accounts receivable Cash receipts from: Total cash receipts BUILI-TIGHT Cash Budget For July, August, and September August September Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Required information (The following information applies to the questions displayed below.) Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company's management predicts that 5,100 skis and 6,100 pounds of carbon fiber will be in inventory on June 30 of the current year and that 151,000 skis will be sold during the next (third) quarter. A set of two skis sells for $310. Management wants to end the third quarter with 3,600 skis and 4,100 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $16 per pound. Each ski requires 0.5 hours of direct labor at $21 per hour. Variable overhead is applied at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,783,000 for the quarter. Required: 1. Prepare the third quarter production budget for skis. 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 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 3. Prepare the direct labor budget for the third quarter. BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to be produced Total labor hours needed Budgeted direct labor cost Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Total labor hours needed Required information [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September $62,500 $78,500 $ 49,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,460 4,340 20,500 13,740 3,660 17,100 14,060 3,740 17,500 Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,300 in accounts receivable; and a $5,300 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,300 per month), and rent ($6,800 per month). 1. Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September 1. Prepare a cash receipts budget for July, August, and September BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less: ending accounts receivable Cash receipts from: Total cash receipts BUILI-TIGHT Cash Budget For July, August, and September August September Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month