Lesson Plan for Senior Secondary 2 - Financial Accounting - Manufacturing Account Iii

### Lesson Plan: Financial Accounting - Manufacturing Account III #### Grade Level: Senior Secondary 2 #### Subject: Financial Accounting #### Duration: 2 periods (80 minutes total) #### Topic: Manufacturing Account III #### Objectives: 1. Students will understand the structure and components of a Manufacturing Account. 2. Students will be able to prepare a Manufacturing Account. 3. Students will grasp the concepts of prime cost, factory overheads, and total manufacturing costs. 4. Students will analyze the difference between a Manufacturing Account and a Trading Account. #### Materials Needed: - Whiteboard and markers - Projector and computer for presentation slides - Textbooks - Worksheets for practice - Calculators - Sample financial statements #### Key Terms and Concepts: - Manufacturing Account - Prime Cost - Factory Overheads - Total Manufacturing Costs - Finished Goods - Work-in-Progress - Trading Account --- ### Lesson Outline: #### Introduction (10 minutes) 1. **Recap Previous Lesson:** - Quick review of Manufacturing Account I and II. - Discuss the importance and purpose of a Manufacturing Account. 2. **Lesson Overview:** - Explain that today we will dive into the third segment of the Manufacturing Account series. - Introduce the objectives of the lesson. #### Body (60 minutes) 1. **Structure of a Manufacturing Account (15 minutes):** - Introduction to the format of a Manufacturing Account. - Explain the major sections: Prime Cost, Factory Overheads, Total Manufacturing Costs. - Use a diagram to visually break down each section. 2. **Detailed Breakdown (15 minutes):** - **Prime Cost:** - Direct Materials: Explain direct materials used, beginning and ending inventory. - Direct Labor: How to compute direct labor costs. - Direct Expenses: Other direct costs associated with manufacturing. - **Factory Overheads:** - Define and give examples of factory overheads including indirect materials and labor, depreciation, utilities, etc. - **Total Manufacturing Costs:** - Summing Prime Cost and Factory Overheads to get the Total Manufacturing Costs. - Discuss the movement of WIP (Work-in-Progress) and Finished Goods through the accounting cycle. 3. **Comparison with Trading Account (10 minutes):** - Highlight differences between Manufacturing and Trading Accounts. - Discuss how the Manufacturing Account feeds into the Trading Account and its importance in determining the cost of goods sold. 4. **Example Walkthrough (10 minutes):** - Present a sample problem with numbers. - Walk students through the preparation of a Manufacturing Account step-by-step. - Encourage questions and active participation. #### Practice and Application (20 minutes) 1. **Worksheet Activity:** - Hand out worksheets with problems related to preparing a Manufacturing Account. - Students work individually or in small groups to complete the worksheet. 2. **Class Discussion:** - Review the completed worksheets. - Discuss any common errors or points of confusion. - Provide solutions and clarifications as needed. #### Conclusion and Questions (10 minutes) 1. **Summary:** - Recap the key points covered in the lesson. - Reinforce the importance of each section in the Manufacturing Account. 2. **Q&A Session:** - Open the floor to any remaining questions. - Clarify any lingering doubts or complex points. 3. **Homework Assignment:** - Assign homework problems related to Manufacturing Account III. - Ensure the assignment reinforces the day's lesson. --- #### Assessment: - Completion and accuracy of worksheet problems. - Participation during class discussions and activities. - Performance on homework assignments. - Observation of students' ability to explain the differences between Manufacturing and Trading Accounts. #### Reflection: - After the lesson, take note of any areas where students struggled or were particularly engaged. - Reflect on the pacing and effectiveness of the lesson for future improvements. --- This lesson plan aims to provide a clear and structured understanding of Manufacturing Account III, ensuring students gain practical skills in preparing these accounts and understanding their significance in Financial Accounting.