Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. For the left columns, you're prompted to choose the following drop down options as show in the photos, for the right columns numbers are required. Please use the same format as in the photos. Thank you!
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.
Required:
1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.
For the left columns, you're prompted to choose the following drop down options as show in the photos, for the right columns numbers are required. Please use the same format as in the photos. Thank you!
![!
Required information
[The following information applies to the questions displayed below.]
Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber.
Management reports that 6,400 snowboards and 7,400 pounds of carbon fiber are in inventory at the
beginning of the third quarter, and that 164,000 snowboards are budgeted to be sold during the third
quarter. Management wants to end the third quarter with 4,900 snowboards and 5,400 pounds of carbon
fiber in inventory. Carbon fiber costs $13 per pound. Each snowboard requires 0.5 hour of direct labor at
$18 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company
budgets fixed overhead of $1,796,000 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2Fa86cb135-f755-45c9-b862-42968429ff78%2Fmwq5d4_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
