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 6,700 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 Production Budget (in units) Third Quarter Total required units Units to produce
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 6,700 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 Production Budget (in units) Third Quarter Total required units Units to produce
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
![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 6,700 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
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%2F74c17274-487d-417e-a6d1-f053cc6b58a9%2F3a6fe516-0bd0-4e42-a437-3aa29a5e7944%2Ffc7fjmp_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 6,700 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
Production Budget (in units)
Third Quarter
Total required units
Units to produce
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education