Save Chapter 7 Homework Help 4 The following information applies to the question

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Save Chapter 7 Homework Help 4 The following information applies to the questions displayed belowj Black Diamond Company produces snow skis. Each ski requires 3 pounds of cerbon fiber The company's management 100 skis and 6,300 pounds of carbon Sber will be in inventory on June 30 of the current year and that skis will be sold during the next (third) quarter. A set of two skis sels for $310. Management wants to end the third predicts that 5,1 quarter with 3,600 skis and 4100 Each ski requires O S hours of direct labor at $21 per hout Variable pounds of carbon fiber in inventory Carbon fber can be purchased for $16 per pound. The company budgets fixed overhead of $1783,000 for the quarter hout. 214 2 Prepare the third-quarter direct materiais (carbon fber) budget: include the dollar cost of purchases Direct Materials Budget Budgeted production Materiais needed for production (bs (bs) Direct materials to be purchased (bs) Budgeted cost ofl drect materiais purchases MacBook Air 1 8

Explanation / Answer

A Beginning inventory 5100 B Sales during the third quarter 151000 C Ending inventory 3600 D=B+C-A Quantity of production in third quarter 149500 BLACK DIAMOND COMPANY Direct material Budget Third Quarter E Budgeted production(units) 149500 F Material required per unit of production(pounds) 3 G=E*F Total Material needed for production in third quarters 448500 H Ending Inventory 4100 I Beginning Inventory 6100 J=G+H-I Direct Materials to be purchased 446500 K Purchase Price per pound $16 L=J*K Budgeted cost of direct materials purchases $7,144,000

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