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

## Lesson Plan: Financial Accounting - Manufacturing Account IV ### Class: Senior Secondary 2 ### Subject: Financial Accounting ### Duration: 90 minutes ### Topic: Manufacturing Account IV --- ### 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 --- ### 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. --- ### 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. --- 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.