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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
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 helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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 income and expenses.
Question
Dinesh bhai
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fafe4957b-6461-4640-91e2-befc912ceece%2F6b41bfe5-2499-4bc0-9019-a51f0fde25cd%2F5u2xds_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education