Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management rep that 6,300 snowboards and 7,300 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 163,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,800 snowboards and 5,300 pounds of carbon fiber in inventory. Carbon fiber costs $12 per pound. Each snowboard requires 0.4 hour of direct labor at $17 per hour. Variable overhead is budgeted at the rate of $7 per direct labor hour. T company budgets fixed overhead of $1,795,000 for the quarter. oblem 20-1A (Algo) Part 2 Prepare the direct materials budget for the third quarter. its to produce BLACK DIAMOND COMPANY Direct Materials Budget terials needed for production (pounds) cal materials required (pounds) terials to purchase (pounds) st of direct materials purchases Third Quarter
Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management rep that 6,300 snowboards and 7,300 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 163,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,800 snowboards and 5,300 pounds of carbon fiber in inventory. Carbon fiber costs $12 per pound. Each snowboard requires 0.4 hour of direct labor at $17 per hour. Variable overhead is budgeted at the rate of $7 per direct labor hour. T company budgets fixed overhead of $1,795,000 for the quarter. oblem 20-1A (Algo) Part 2 Prepare the direct materials budget for the third quarter. its to produce BLACK DIAMOND COMPANY Direct Materials Budget terials needed for production (pounds) cal materials required (pounds) terials to purchase (pounds) st of direct materials purchases Third Quarter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
1
![Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO
P1
[The following information applies to the questions displayed below.]
Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management repo
that 6,300 snowboards and 7,300 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that
163,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with
4,800 snowboards and 5,300 pounds of carbon fiber in inventory. Carbon fiber costs $12 per pound. Each snowboard
requires 0.4 hour of direct labor at $17 per hour. Variable overhead is budgeted at the rate of $7 per direct labor hour. T
company budgets fixed overhead of $1,795,000 for the quarter.
-oblem 20-1A (Algo) Part 2
Prepare the direct materials budget for the third quarter.
nits to produce
BLACK DIAMOND COMPANY
Direct Materials Budget
Third Quarter
aterials needed for production (pounds)
Otal materials required (pounds)
aterials to purchase (pounds)
ost of direct materials purchases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c6373c8-9fdf-490e-8350-1edf2f7d5943%2F1a6d238f-3490-40ca-bd8b-b2187715e84a%2Fxt6h6xi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO
P1
[The following information applies to the questions displayed below.]
Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management repo
that 6,300 snowboards and 7,300 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that
163,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with
4,800 snowboards and 5,300 pounds of carbon fiber in inventory. Carbon fiber costs $12 per pound. Each snowboard
requires 0.4 hour of direct labor at $17 per hour. Variable overhead is budgeted at the rate of $7 per direct labor hour. T
company budgets fixed overhead of $1,795,000 for the quarter.
-oblem 20-1A (Algo) Part 2
Prepare the direct materials budget for the third quarter.
nits to produce
BLACK DIAMOND COMPANY
Direct Materials Budget
Third Quarter
aterials needed for production (pounds)
Otal materials required (pounds)
aterials to purchase (pounds)
ost of direct materials purchases
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