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. Show Transcribed Text ง D 3. Prepare the direct labor budget for the third quarter. Units to produce BLACK DIAMOND COMPANY Direct labor hours needed Cost of direct labor Direct Labor Budget Third Quarter

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. Show Transcribed Text ง D 3. Prepare the direct labor budget for the third quarter. Units to produce BLACK DIAMOND COMPANY Direct labor hours needed Cost of direct labor Direct Labor Budget Third Quarter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 5,300 snowboards and 6,300 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 153,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 3,800 snowboards and 4,300 pounds of carbon fiber in inventory. Carbon fiber costs $18 per pound. Each snowboard requires 0.5 hour of direct labor at $23 per hour. Variable overhead is budgeted at the rate of $11 per direct labor hour. The company budgets fixed overhead of $1,785,000 for the quarter. 3. Prepare the direct labor budget for the third quarter. BLACK DIAMOND COMPANY Units to produce Direct labor hours needed Cost of direct labor Direct Labor Budget Third Quarter
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 6,800 snowboards and 7,800 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 168,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,300 snowboards and 5,800 pounds of carbon fiber in inventory. Carbon fiber costs $17 per pound. Each snowboard requires 0.5 hour of direct labor at $22 per hour. Variable overhead is budgeted 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 production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Total required units Units to produce
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Xander Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a cost of $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost-flow method. Xander blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 200,000 blue rugs per year. The budgeted selling price is $2,000 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xander makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools—one for weaving and the other for dyeing. Weaving overhead is allocated to products based on direct…
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Minty Madness Co. manufactures mint-flavoured products. Minty has four main products: Minty Cookies, Minty Ice Cream, Minty Chocolate, and Minty Gum. Maximum demand for these products is 20 units of each per month. Each product requires a different amount of mint. Since Minty only uses a specially flavoured mint in its products, it is limited to 100 kgs of mint each month. Management is reviewing its budget for the month of March, and has provided the following data: Cookies $60 $25 1.5 kg Ice Cream $90 $48 2 kg Chocolate $50 $26 0.75 kg Gum Sales price per unit Variable costs per unit Mint required per unit $40 $18 1.25 kg Required: Analyze this data and determine the best product mix for Minty Madness Co. to maximize its profitability in the month of March. Ensure that you show all your calculations.
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Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter. 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.)…
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.80 Direct labor 0.55 Variable overhead 0.85 Fixed overhead 1.85 Total unit cost $5.05 For the coming year, Play-Disc expects to make 350,000 plastic discs, and to sell 340,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $5.05. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: $- Select - - Select - Overhead: - Select - - Select - Total cost per unit $fill in the blank af3ea3fed069042_9 Total ending inventory cost $fill in the blank af3ea3fed069042_10 Question Content Area 2. What…