Republic of the Philippines Polytechnic University of the Philippines Quezon City Campus

Bachelor in Business Teacher Education Future Business Teachers Organization

Grade Level: Subject: Lesson/s:

Fourth Year High School Principles of Financial Accounting Chapter 9 Manufacturing Operation

I.

Objectives: At the end of the lesson, the students will be able to: 1. Define the different terminologies in manufacturing operation. 2. Differentiate manufacturing and merchandising. 3. Procedure: A. Routine Activity Conduct a prayer Greetings Checking of Attendance Make a review of the past lesson

II.

B. Motivation Divide the class into two groups and conduct a game called group the pictures. From the given pictures related to the subject matter, identify whether it belongs to merchandising or manufacturing section.

C. Presentation (Lesson Proper) Manufacturing Operation Manufacturing and merchandising companies are alike because both depend on the sale of one or more commodities or products for revenue. However, a merchandising company purchases goods that are already in their finished state and ready to be sold. On the other hand, a manufacturing company must purchase raw materials and use production equipment and employee labor to transform the

raw materials into finished products. While a merchandising company has only one inventory, merchandise available for sale, a manufacturing company has three types: Unprocessed or raw materials Work in Process Finished goods A comparison of manufacturing companys cost of goods sold of the income statement with that of a merchandising company is shown below. There are two major differences in the cost of goods sold section: 1. Good ready to be sold are referred to as merchandise inventory by a merchandising company and as finished goods inventory by a manufacturing company. 2. Cost of purchases for a merchandising company is equivalent to cost of goods manufactured by a manufacturing company. III. Reference: Principles of Financial Accounting Milagros B. Hernane, pp 323 IV. Assessment: Divide the class into two groups and give them some sort of pictures, classify them whether it is belong to, raw materials, work in process or finished goods. V. Agreement: Review the lesson for the quiz next meeting VI. Remarks: ________ Number of learners within mastery level ________ Number of learners needing remediation

Prepared by: Jasmin E. Caballero BBTE 3-1

Bookkeeping for High School Teaching