Lesson Notes By Weeks and Term - Senior Secondary 2

Term: 1^st Term

Week: 1

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Manufacturing account I

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define manufacturing account
2. State the purpose of manufacturing account
3. Explain some terminologies used
4. Calculate the cost of raw materials used

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on adjustments	Students pay attention
STEP 2 EXPLANATION	She manufacturing account and states the purpose of manufacturing account	Students pay attention and participates
STEP 3 DEMONSTRATION	She explains some terminologies used and further shows the learners how to calculate the cost of raw materials used	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE

MANUFACTURING ACCOUNT

Manufacturing accounts are prepared to ascertain the cost of goods

manufactured during the financial year.

Manufacturing of goods is the transformation of raw materials into

finished goods.

 

PURPOSE OF MANUFACTURING ACCOUNTS

1. To ascertain the cost of the goods manufactured.
2. To ascertain the amount of any profit on the manufacturing process

 

TERMINOLOGIES USED

1. Direct Material Costs:These are costs which are directly used in the manufacturing of a product. For example, materials used in the preparation of plastic tables like glue plastic sheets, paints etc.
2. Direct labour costs: Costs which are paid directly to the worker involved in the manufacturing of a product. For example, in the preparation of Plastic tables wages are paid to the worker involved directly.
3. Direct Expenses:Expenses incurred in the manufacture of a product. For example, charges for special equipment used in the process of manufacture.
4. Factory Overheads:Expenses incurred indirectly in the manufacturing of a product. For example, factory rents, factory power and lighting etc.
5. Administrative Expenses:Administrative expenses are the expenses incurred in the process of planning, controlling and directing the business organization. For example, office rents, office electricity etc.
6. Selling and Distribution Expenses:Expenses incurred in the process of selling, marketing and distributing the goods manufactured. For example cost of advertising, carriage outwards, salary to salesperson etc.
7. Finance Costs:Expenses such as bank charges, discounts allowed and other monetary expenses are included in Factory Expenses.

 

Cost of raw materials consumed

This is the cost of raw materials which have been used up in the

manufacturing process. This will be found by;

1. Taking opening stock of raw materials
2. Adding purchases of raw materials

Deducting closing stock of raw materials.

 EVALUATION:   1. Define manufacturing account

2. State the purpose of manufacturing account
3. Discuss some of the terminologies used
4. How do we calculate the cost of raw materials used?

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively