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Problem $20-1$A $($Algo$)$ Manufacturing: Preparing production, materials, labor, and overhead budgets LO P$1$

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Black Diamond Company produces snowboards. Each snowboard requires $2$ pounds of carbon fiber. Management reports that $6,100$ snowboards and $7,100$ pounds of carbon fiber are in inventory at the beginning of the third quarter, and that $161,000$ snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with $4,600$ snowboards and $5,100$ pounds of carbon fiber in inventory. Carbon fiber costs $$10$ per pound. Each snowboard requires $0\mathrm{.}5$ hour of direct labor at $$15$ per hour. Variable overhead is budgeted at the rate of $$5$ per direct labor hour. The company budgets fixed overhead of $$1,793,000$ for the quarter.

Problem $20-1$A $($Algo$)$ Part $2$

$2.$ Prepare the direct materials budget for the third quarter.

$\backslash$table$[[$BLACK DIAMOND COMPANY$],[$Direct Materials Budget,,$],[$Units to produce,,Third Quarter$],[$Materials required per unit $($pounds$),163,500,$units$],[$Materials needed for production $($pounds$),,$pounds$],[$Add: Desired ending materials inventory $($pounds$),,],[$Total materials required $($pounds$),,],[$Less: Beginning materials inventory $($pounds$),,],[$Materials to purchase $($pounds$),,],[$Materials cost per pound,,$],[$Cost of direct materials purchases,,$]]$