文档介绍：Case
Frame-it Ltd is a manufacturer of metal picture frames. The firm's two
product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20
x 25 cm). The primary raw materials are flexit metal strips and 23 cm by 60
cm glass sheets. Each S frame requires a 2/3 metre metal strip; an L frame
requires a 1 metre strip. Allowing for normal breakage and scrap glass,
Frame-it can get either four S frames or two L frames out of a glass sheet.
Other raw materials, such as cardboard backing, are insignificant in cost and
are treated as indirect materials.
Frame-it is preparing the documentation to support their finance application.
As Head of Finance (Budgets) you are required to prepare a Budgeted Balance
Sheet for the period ending 31 December 2011. In order to allow the board to
understand and explain the balance sheet predictions you are required to also
provide all the supporting schedules that were needed pile the budgeted
balance sheet.
Your study of anisations accounting system has revealed the following
information.
1. Sales in the fourth quarter of 2010 are expected to be 50,000 S frames
and 40,000 L frames. The sales manager predicts that, over the next
two years, sales in each product line will grow by 5,000 units each
quarter over the previous quarter. For example, S frame sales in the
first quarter of 2011 ar