Required information [The following information applies to the questions displayed below] Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management reports that 5,100 snowboards and 6,100 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 151,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,600 snowboards and 4,100 pounds of carbon fiber in inventory. Carbon fiber costs $16 per pound. Each snowboard requires 0.5 hour of direct labor at $21 per hour. Variable overhead is budgeted at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,783,000 for the quarter. 2. Prepare the direct materials budget for the third quarter. Units to produce BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…