## Lesson Plan: Financial Accounting - Manufacturing Account IV
### Class: Senior Secondary 2
### Subject: Financial Accounting
### Duration: 90 minutes
### Topic: Manufacturing Account IV
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### Objectives:
By the end of this lesson, students should be able to:
1. Understand the structure and purpose of a Manufacturing Account.
2. Identify and classify manufacturing costs.
3. Prepare a Manufacturing Account using practical examples.
4. Differentiate between Prime Cost, Factory Overhead, and Total Manufacturing Cost.
### Materials Needed:
- Chalkboard/Whiteboard and markers
- Projector (for PowerPoint presentation)
- Handouts with sample Manufacturing Accounts
- Calculators
- Notebooks and pens
### Key Concepts:
1. Manufacturing Costs (Direct Materials, Direct Labor, and Factory Overhead)
2. Prime Cost
3. Total Manufacturing Cost
4. Work in Progress
5. Cost of Goods Manufactured
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### Lesson Outline:
#### Introduction (10 minutes)
1. **Greeting and Settling In**
- Start with a brief greeting and take attendance.
- Ensure all students are settled and ready.
2. **Review Previous Lesson**
- Briefly review the previous lesson about Manufacturing Accounts I, II, and III, if applicable.
- Engage students with a few questions about key concepts discussed previously.
3. **Introduce Today’s Topic**
- Introduce the topic "Manufacturing Account IV" and outline the key objectives.
#### Body of Lesson (60 minutes)
1. **Explanation of Key Concepts (15 mins)**
- **Manufacturing Costs**:
- Define and differentiate Direct Materials, Direct Labor, and Factory Overhead.
- Provide examples of each category.
- **Prime Cost**:
- Define Prime Cost as the sum of Direct Materials and Direct Labor.
- Illustrate with a sample calculation.
- **Total Manufacturing Cost**:
- Explain Total Manufacturing Cost as Prime Cost plus Factory Overhead.
- Show how it relates to the completion of products.
2. **Detailed Breakdown of Manufacturing Account (10 mins)**
- Breakdown the structure of a Manufacturing Account:
- Opening Stock of Raw Materials
- Add Purchases of Raw Materials
- Less Closing Stock of Raw Materials
- Add Direct Labor
- Add Factory Overhead (with examples: Rent, Depreciation, etc.)
- Sum to get Total Manufacturing Cost
- Add Opening Work in Progress
- Less Closing Work in Progress
- Derive Cost of Goods Manufactured
3. **Step-by-Step Preparation of a Manufacturing Account (20 mins)**
- Walkthrough an example by preparing a Manufacturing Account using a comprehensive example:
- Provide a sample template on the board or projector.
- Fill in the figures for each section step by step with students.
- Stress the importance of accuracy in each calculation.
4. **Group Exercise (15 mins)**
- Divide students into small groups.
- Provide each group with a handout containing figures related to manufacturing costs.
- Instruct each group to prepare a Manufacturing Account based on the figures provided.
- Allow students to collaborate and engage in discussions.
5. **Discussion and Correction (5 mins)**
- Review the completed Manufacturing Accounts from each group.
- Highlight common errors and clarify any points of confusion.
- Provide correct answers and ensure understanding.
#### Conclusion (10 minutes)
1. **Recap Key Points**
- Summarize the main points covered in the lesson:
- Definitions of key costs
- Structure of Manufacturing Account
- Importance of accurate calculation
- Encourage questions and clarify any remaining doubts.
2. **Assignment/Homework**
- Assign a relevant homework task:
- Prepare a Manufacturing Account for a given set of data to reinforce learning.
- Inform students that this will be discussed in the next lesson.
3. **Wrap Up**
- Thank students for their participation.
- Provide a brief preview of the next lesson.
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### Assessment:
- Observe student participation during class discussion and group activities.
- Review the prepared Manufacturing Accounts from the group exercise.
- Grade the assigned homework task to assess understanding and accuracy.
### Additional Notes:
- Ensure to provide individual support for students who struggle with calculations.
- Use real-life examples to make the lesson relatable.
- Continually encourage students to ask questions and engage actively in the lesson.
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This lesson plan provides a structured approach to teaching Manufacturing Account IV to Senior Secondary 2 students, focusing on key accounting concepts and practical application.