Issues in Employee Performance



Issues in Employee Performance

Part 1.

Sales Budget

For the Year Ending Sept, 2012

 

Quarter

March

April

May

June

July

August

September

Sales Units (Log)

40000

45000

45000

45000

45000

45000

45000

× Price per Unit( £ )

131

131

131

131

131

131

131

Total Sales Of Log

5240000

5895000

5895000

5895000

5895000

5895000

5895000

 

 

 

 

 

 

 

 

Sales Units (Branch)

25000

25000

25000

25000

28750

28750

28750

× Price per Unit( £ )

208

208

208

208

195.52

195.52

195.52

Total Sales Of Branch

5200000

5200000

5200000

5200000

5621200

5621200

5621200

 

 

 

 

 

 

 

 

Total Credit Sales

10440000

11095000

11095000

11095000

11516200

11516200

11516200

Redwoods Limited

Production Budgets (in units)

For the Year Ending Sept, 2012

 

Quarter

March

April

May

June

July

August

September

Budgeted Sales Units (LOG)

40000

45000

45000

45000

45000

45000

45000

+ Planning Ending Units (15%*45000)

 

5000

5000

5000

5000

5000

5000

- Beginning Units (15%*45000)

 

6750

6750

6750

6750

6750

6750

Planned Production in Units (LOG)

 

43250

43250

43250

43250

43250

43250

 

 

 

 

 

 

 

 

Budgeted Sales Units (BRANCH)

25000

25000

25000

25000

28750

28750

28750

+ Planning Ending Units (15%*45000)

 

4000

4000

4000

4000

4000

4000

- Beginning Units (15%*following month)

 

9000

9000

9000

9000

9000

9000

Planned Production in Units (BRANCH)

 

20000

20000

20000

23750

23750

23750

Redwoods Limited

Raw materials purchases budgets (units)

For the Year Ending Sept, 2012

 

Quarter

March

April

May

June

July

August

September

Production

 

43250

43250

43250

43250

43250

43250

+ Planning Ending Units (B)

 

3750

3750

3750

3750

3750

3750

+ Planning Ending Units (A)

 

1500

1500

1500

1500

1500

1500

- Beginning Units (A)

 

1375

1375

1375

1375

1375

1375

- Beginning Units (B)

 

4325

4325

4325

4325

4325

4325

Planned Production in Units (LOG)

 

42800

42800

42800

42800

42800

42800

 

 

 

 

 

 

 

Production

 

20000

20000

20000

23750

23750

23750

+ Planning Ending Units (B)

 

3750

3750

3750

3750

3750

3750

+ Planning Ending Units (A)

 

1500

1500

1500

1500

1500

1500

- Beginning Units (A)

 

1375

1375

1375

1375

1375

1375

- Beginning Units (B)

 

4325

4325

4325

4325

4325

4325

Planned Production in Units (BRANCH)

 

19550

19550

19550

23300

23300

23300

Redwoods Limited

Direct labour budgets (hours and £)

For the Year Ending Sept, 2012

 

Quarter

March

April

May

June

July

August

September

Planned Production in Units

 

43250

43250

43250

43250

43250

43250

× Direct Labour Hours per Unit (skilled)

 

20.9

20.9

20.9

20.9

20.9

20.9

× Direct Labour Hours per Unit (skilled)

 

10.4

10.4

10.4

10.4

10.4

10.4

Budgeted Direct Labour Hours

 

1353725

1353725

1353725

1353725

1353725

1353725

 

 

 

 

 

 

 

 

Planned Production in Units

 

20000

20000

20000

23750

23750

23750

× Direct Labour Hours per Unit (skilled)

 

25.08

25.08

25.08

25.08

25.08

25.08

× Direct Labour Hours per Unit (skilled)

 

15.6

15.6

15.6

15.6

15.6

15.6

Budgeted Direct Labour Hours

 

813600

813600

813600

966150

966150

966150

Redwoods Limited

Cash Budget

For the Year Ending Sept, 2012

 

Quarter

March

April

May

June

July

August

September

Sales

10440000

11095000

11095000

11095000

11516200

11516200

11516200

Credit Sales Collection 65%

6786000

7211750

7211750

7211750

7485530

7485530

7485530

Credit Sales Collection 32%

 

3340800

3550400

3550400

3550400

3685184

3685184

uncollectable 3%

 

 

313200

332850

332850

332850

345486

Total Collection

17226000

21647550

22170350

22190000

22884980

23019764

23032400

 

 

 

 

 

 

Less: Cash Outflows

 

 

 

 

 

Purchases (Log)

 

2354000

2354000

2354000

2354000

2354000

2354000

Purchases (Branch)

 

2346000

2346000

2346000

2796000

2796000

2796000

Payment (60%)

 

1412400

1412400

1412400

1412400

1412400

1412400

Payment (40%)

 

 

941600

941600

941600

941600

941600

Payment (60%)

 

1407600

1407600

1407600

1677600

1677600

1677600

Payment (40%)

 

 

938400

938400

938400

1118400

1118400

discount (7.5)(A)

 

176550

176550

176550

176550

176550

176550

Salaries and Wages

 

400000

420000

441000

463050

486202.5

510512.625

depreciation of equipment

 

1250000

1250000

1250000

1250000

1250000

1250000

Total Cash Outflow

 

7743450

9643450

9664450

10406500

10609652.5

10633962.63

 

 

 

 

 

 

 

 

Net Cash Flow

 

13904100

12526900

12525550

12478480

12410111.5

12398437.38

Opening Cash Balance

 

 

500,000

13,026,900

25,552,450

38,030,930

50,441,042

Closing Cash Balance

 

500,000

13,026,900

25,552,450

38,030,930

50,441,042

62,839,479

Part 2.

Sales Budget

A sales budget is the representation of an estimate of the sales scheduled in quantitative terms, by an organization. The sales budget is the first step in a master budget, which is the budget that contains all the planning. If the plan is unrealistic and sales forecasts have been prepared carefully and accurately, the following steps in the budget process will be unreliable, as the sales budget provides the data to prepare budgets for production, purchase, selling expenses and administrative costs (Brookson, 2000).

In the case of Redwoods Limited, the sales are expected to increase by 12.5 percent which means that the increased sales units will be 45000 and there will be no difference in the selling price of Log. For branch, the sales units would increase by 15 percent to 28750 units. This increase in sales is expected mainly because of decrease in the per unit price to 195.52.

Production Budgets

The production budget must be carefully coordinated with the sales budget to ensure that production and sales keep some balance during the period. The number of units to be manufactured to achieve budgeted sales and inventory requirements for each product is set to the production budget. These are estimates that are closely related to the sales budget and desired inventory levels. In fact, production budget is the budget of projected sales and adjusted for inventory change, you must first determine whether the company can produce the quantities projected sales budget, in order to avoid excessive cost in hand with jobs (Ross, 2008).

The budget is based on many planning strategies which is an important tool as a rule that is used to make the administration of proper determination of capital costs and ...