Question

Check my work Problem 07-1A Manufacturing: Preparing production and manufacturing budgets LO P1 [The following information applies to the questions displayed below.] Part 1 of 4 Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company's management predicts that 5,000 skis and 6,000 pounds of carbon fiber will be in inventory on June 30 of the current year and that 150,000 skis will be sold during the next (third) quarter. A set of two skis sells for $300. Management wants to end the third quarter with 3,500 skis and 4,000 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $15 per pound. Each ski requires 0.5 hours of direct labor at $20 per hour. Variable overhead is applied at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,782,000 for the quarter. 0.66 points eBook Problem 07-1A Part 1 Print References Required: 1. Prepare the third-quarter production budget for skis. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Budgeted units sales for quarter Required units of available production Budgeted beginning inventory (units) Units to be manufactured Screenshot

Answer 1

Answer

--Requirement 1 Production Budget.

>All data is from question only.

Budgeted unit sales for quarter	150,000
Add: Desired ending inventory of finished goods	3,500
Required units of available production	153,500
Less: Beginning inventory of finished goods	5,000
Units to be manufactured	148,500