Problem $20-1$A $($Algo$)$ Part $1$

Required:

$1.$ Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. $\backslash$begin$\{$tabular$\}\{|$l$|$r$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ BLACK DIAMOND COMPANY $\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ Direct Materials Budget $\}\backslash \backslash$

$\backslash$hline Units to produce & Third Quarter $\backslash \backslash$

$\backslash$hline Materials to be purchased & $169,000$ & units $\backslash \backslash$

$\backslash$hline Materials needed for production $($pounds$)$ & $2$ & pounds $\backslash \backslash$

$\backslash$hline Add: Desired ending materials inventory $($pounds$)$ & & $\backslash \backslash$

$\backslash$hline Total materials required $($pounds$)$ & & $\backslash \backslash$

$\backslash$hline Less: Beginning materials inventory $($pounds$)$ & & $\backslash \backslash$

$\backslash$hline Materials to purchase $($pounds$)$ & & $\backslash \backslash$

$\backslash$hline Materials cost per pound & & $\backslash \backslash$

$\backslash$hline Cost of direct materials purchases & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$