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Posted: October 4th, 2023
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The companyâs management predicts that 4,800 skis and 6,100 pounds of carbon fiber will be in inventory on June 30 of the current year and that 152,000 skis will be sold during the next (third) quarter. Management wants to end the third quarter with 3,700 skis and 4,200 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $15 per pound.Required1. Prepare the third-quarter production budget for skis.2. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases.
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