Required information 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 reports 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. The company budgets fixed overhead of $1,795,000 for the quarter. Problem 20-1A (Algo) Part 1 equired: Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Budgeted sales units Add: Desired ending inventory units Total required units Less: Beginning inventory units Units to produce Third Quarter
Required information 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 reports 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. The company budgets fixed overhead of $1,795,000 for the quarter. Problem 20-1A (Algo) Part 1 equired: Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Budgeted sales units Add: Desired ending inventory units Total required units Less: Beginning inventory units Units to produce 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
Hardev
![Required information
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 reports
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. The
company budgets fixed overhead of $1,795,000 for the quarter.
Problem 20-1A (Algo) Part 1
equired:
Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.
BLACK DIAMOND COMPANY
Production Budget (in units)
Budgeted sales units
Add: Desired ending inventory units
Total required units
Less: Beginning inventory units
Units to produce
Third Quarter](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5f18ebb-354b-4817-8c8e-80b942997af4%2Fae219e47-77c4-493f-a66c-448eff2bafb1%2Fell9rh5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
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 reports
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. The
company budgets fixed overhead of $1,795,000 for the quarter.
Problem 20-1A (Algo) Part 1
equired:
Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.
BLACK DIAMOND COMPANY
Production Budget (in units)
Budgeted sales units
Add: Desired ending inventory units
Total required units
Less: Beginning inventory units
Units to produce
Third Quarter
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