Lesson Plan

• Describe the purpose and key components of a manufacturing account.
• Calculate raw materials used, cost of production, and cost of goods sold.
• Prepare a manufacturing account and use it to produce an income statement.
• Compile a statement of financial position using closing balances and net profit.
• Analyse the flow of costs from raw materials to profit.

• Projector or interactive whiteboard
• Printed worksheet with a blank manufacturing‑account template
• Calculator or spreadsheet software
• Sample data set (as in the worked example)
• Whiteboard markers and erasers
• Student notebooks

Begin with a short video showing a factory floor to highlight why tracking production costs matters. Ask learners to recall the three inventory accounts (raw materials, work‑in‑progress, finished goods) and how they relate to profit. Explain that by the end of the lesson they will be able to construct a manufacturing account, turn it into an income statement, and finish with a balance sheet.

1. Do‑now (5’) – quick quiz on raw materials, WIP and finished‑goods definitions.
2. Mini‑lecture (10’) – introduce the manufacturing‑account format and the cost‑flow concept.
3. Guided practice (15’) – students complete a blank manufacturing account using the provided sample data.
4. Pair activity (10’) – calculate COGS and transfer the figure to an income‑statement template.
5. Whole‑class review (5’) – discuss common errors and reinforce key points.
6. Extension (5’) – students draft a simple statement of financial position using the closing balances and net profit.

Summarise the cost‑flow from raw materials to profit and check understanding with an exit‑ticket question: “What figure moves from the manufacturing account to the income statement?” Assign homework to complete a full set of accounts for a new data set provided on the class portal.