Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,700 snowboards and 7,700 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 167,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,200 snowboards and 5,700 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 $11 per direct labor hour. The company budgets fixed overhead of $1,799,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,700 snowboards and 7,700 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 167,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,200 snowboards and 5,700 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 $11 per direct labor hour. The company budgets fixed overhead of $1,799,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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Vishano
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