Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: understand direct material, direct labour, prime cost and factory overheads
Learning Objective/s:
  • Identify and calculate the cost of direct material.
  • Determine direct labour cost and compute prime cost.
  • Explain how factory overheads are allocated to products.
  • Prepare a simple manufacturing account and calculate COGS.
  • Analyse the impact of overhead variations on total manufacturing cost.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheets with data tables
  • Calculator for each student
  • Accounting handout on manufacturing accounts
  • Sticky notes for grouping overhead items
 Introduction:
Begin with a quick question: “What costs do you think are directly tied to making a product?” Recall previous lessons on cost classifications. Today we will explore direct material, direct labour, prime cost and factory overheads, aiming to construct a manufacturing account and calculate COGS.
Lesson Structure:
  1. Do‑now (5'): Students list examples of direct vs. indirect costs on sticky notes; teacher collects.
  2. Mini‑lecture (10'): Define DM, DL, prime cost, FO with examples; display formulas on projector.
  3. Guided practice (15'): Work through the provided worked example, completing a manufacturing account on the board.
  4. Independent activity (15'): Students complete a new worksheet, calculate DM, DL, prime cost, allocate FO, and determine COGS.
  5. Check for understanding (5'): Quick quiz (Kahoot or show of hands) on key definitions.
  6. Summary discussion (5'): Review common errors and real‑world relevance.
Conclusion:
Summarise that direct material and labour form the prime cost, to which factory overheads are added to obtain total manufacturing cost and COGS. For exit, each student writes one key takeaway on a slip of paper. Homework: complete the additional manufacturing account worksheet posted on the class site.