Lesson Plan 10.3 – Mini-Simulation:
Manufacturing Business
Course Title – Accounting II
Lesson Title – Manufacturing Accounting
Specific Objective - Apply learning about manufacturing businesses.
Performance Objectives:
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Calculate and enter adjustments for a manufacturing business on a work
sheet;
Complete a work sheet;
Prepare a schedule of cost of goods manufactured;
Prepare an income statement;
Prepare a statement of stockholder’s equity;
Prepare a balance sheet;
Journalize and post adjusting and closing entries for a manufacturing
business.
TEKS: 130.67.c.:
5.A-O – explain the nature of managerial cost accounting such as activities,
costs, and cost drivers; conduct cost-volume-profit analysis; identify cost
accounting systems such as job order costing, process costing, activity-based
costing, and project costing; calculate the cost of goods sold; compute overhead
rates; apply overhead to jobs; illustrate the nature of cost accounting decision
making; discuss the nature of cost accounting budgets; explain the use of
variance analysis for cost accounting; discuss the nature of cost
allocation; develop standard variable costs for a product; calculate
variances; conduct variance analysis; perform cost allocation functions;
and prepare cost of production reports.
6.A-C – process preliminary budget detail; prepare budget reports;
and determine relevant cost and revenue data for decision-making purposes
TAKS: R1, M10
Preparation
Materials Needed:
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Projection system
Glencoe’s Textbook, Mini-Practice Set 5
Century 21’s Textbook, Reinforcement Activity 3
Accounting software and spreadsheet software
Lesson Plan 10.3 – Mini-Simulation Manufacturing
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II
Sponge/Focus Activity:
Prepare a Word Scramble of terms from the unit. Use projection system or
overhead to show the Word Scramble to the class. Ask for responses and give
immediate feedback.
Lesson Content:
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See Glencoe’s Textbook, Glencoe’s Textbook, Mini-Practice Set 5: Expert
Publishing Company, Inc.
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Century 21’s Textbook, Reinforcement Activity 3: Furniture Decor, Inc.
Teaching Strategies:
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Let your students utilize any available accounting, spreadsheet or database
software.
 Let your students work independently.
Assessment:
 Check your students work, and let them make corrections.
 Students take the Audit Test over the mini-simulation.
 Students also take a Unit Test covering the terms, concepts, and applications
covered in this unit.
Additional Resources:
Textbooks:
Guerrieri, Donald J., F. Barry Haber, William B. Hoyt, and Robert E. Turner,
Glencoe Accounting Real-World Applications & Connections, Advanced
Course, Fourth Edition, Glencoe McGraw-Hill: New York, New York.
Ross, Kenton E., CPA, Mark W. Lehman, CPA, Claudia Bienias Gilbertson, CPA,
Robert D. Hanson, Century 21 Accounting Advanced, Anniversary Edition,
Thomson South-Western: Mason, OH, 2003.
Multimedia:
Century 21’s Teacher Resource CD
Lesson Plan 10.3 – Mini-Simulation Manufacturing
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II