20 O skis will be sold during the next er with 4300 skis and

20 O skis will be sold during the next er with 4,300 skis and 4,800 pounds of carbon fiber in is applied at the rate of $16 per direct labor hour The company budgets fixed overhead of $1,790.000 for the quarter References

Solution

Black Diamond Company Direct Material Budget Third Quarter Budgeted Production 156500 Finished Goods Direct Material Required Per Unit of FG (LBS) 2.00 Units to be Sold 158000 Material Needed for Production (LBS) 313000 Add: Closing Units 4300 Add: Closing Material Inventory 4800 Total Units Required 162300 Total Material Requirement (LBS) 317800 Less: Opening Units 5800 Less: Opening Material Inventory 6800 Budgeted Production 156500 Direct Materials to be Purchased (LBS) 311000 Direct Material Rate Per Unit 23.00 Budgeted Cost of Direct Materials Purchases 7153000