Level 2 Book-keeping and Accounts Teachers’ Toolkit (Sample) January 2010 For further information contact us: Tel. +44 (0) 8707 202909 Email. [email protected] com www. lcci. org. uk INTRODUCTION Welcome to the Teachers’ Toolkit for Level 2 Book-keeping and Accounts. This Teachers’ Toolkit is a set of inter-related materials, developed by experienced teachers and the Chief Examiner, to support the teaching and learning of the qualification content. The main resource in the toolkit is a Scheme of Work, which gives you examples of how to plan the course and teach the content.
It provides a logical sequence for teaching the syllabus topics, highlighting the key points to emphasise and provides you with guidance on formative assessment and exam preparation to help you and your students to succeed in the qualification. The Scheme of Work is enhanced by the range of integrated innovative materials provided in the Appendices. The information and resources provided in this toolkit are suggestions only. You can use them as you see fit, amending and adapting the content to suit your teaching style and students’ needs.Order now
Additionally, the Scheme of Works provides a good base for you to develop your lessons plans. It is important to remember that the syllabus is the document on which the examination is based and specifies what content and skills need to be covered in the course delivery. Therefore, at all times the information and resources provided in the Teacher’s Toolkit should be read in conjunction with the syllabus. Bear in mind that there are other support resources available freely on our website to help you. Resources available include past papers, sample papers and the Annual Qualification Review. SCHEME OF WORK Qualification Title: Level 2 Book-keeping and Accounts Syllabus Reference: 5 Teaching and Learning Methods Topic: Manufacturing Accounts Suggested Teaching Time: 5 hours Resources Timeframe: Week of . Assessment / Monitoring methods Key teaching points Exam Preparation Tips ? Question & Answers ? Factory overheads ? Teacher Observation are added to prime ? Teacher Resource cost not subtracted . ? Students to read Chapter 13 before the lesson ? Interactive lecture using the Mind Map to introduce the concept of the manufacturing account and the classification of cost. Chalk/White board ? Passport to Success Book – Chapter 13 ? Cost Classification Worksheet ? Group work using Cost Classification worksheet and group discussion to check understanding. ? Manufacturing Account Mind Map ? Teacher led explanation, using Chapter 13, on the preparation and presentation of manufacturing accounts Past papers ? Question 1 – Series 2 2006 (Hong Kong) ? Teacher-led explanations and problem solving on the preparation of Manufacturing, Trading and Profit and Loss Accounts and Balance sheet using exercises /practice questions from Chapter 13 Individual and group problem solving of exercises and practice questions in Chapter 13 and past papers (either in class or as homework). ? Question 1 – Series 3 2006 ? Question 3 – Series 2 2008 (New Syllabus) ? Question 5 – Series 2 2008 (Hong Kong) (New Syllabus) Teacher should emphasise: ? that the basic principles of ‘Double Entry’ underpin the progression of all accounting principles. ? the double entry relationship between the manufacturing account and the trading account. ? that only items relating to ‘Finished Goods’ are included in the Trading and Profit and Loss Account. the importance of learning the cost accounting terms and concepts: direct/indirect; fixed/variable, prime costs & overheads. Types of cost (Labour, Material and Expense) ? that the Manufacturing account relates to ‘costs’ only. ? the principles underpinning the ‘manufacturing profit’ and ‘Provision for Realised Profit’ account and should spend more time on this to ensure students understanding ? the concept of ‘work in progress’ and how it is treated depending on how it is to be valued 2 CD Rom – Multiple ? Identify and label all choice questions key sub-totals e. g. ages 27-28 Prime Costs ? Quizzes ? Peer to peer feedback ? Past papers ? Clearly show how increases and decreases affect the Profit and Loss Account. ? Show all workings and calculations as marks can be gained for application Write titles out in full Direct Expenses Indirect Materials Indirect Labour Indirect Expenses Direct Costs (Prime Costs) Indirect costs (Production Overheads) Costs that can be linked back to a ‘single unit of output’ Costs incurred in the production of goods but not traceable to the units manufactured. Direct Labour Direct Material Manufacturing Account
Cost of Raw Material = Opening, purchases and closing stock of Raw Materials Production/Manufacturing costs Prime Cost + Production Overheads + Work in Progress Production Overheads Prime Costs Work in Progress 3 Level 2 Book-keeping and Accounts Manufacturing Accounts Quiz Instructions: Tick the correct box to show whether the each cost is a part of prime cost or production overhead. Prime Cost Place a tick in the appropriate Box (s) 1. Writing off bad debts 2. Direct wages of Machine Operative 3. Payment of Taxes 4. Heating and lighting 5. Purchase of direct raw materials 6.
Purchase Managers wages 7. Cleaner for factory unit and offices 8. Direct wages of Factory worker 9. Paint used to repair factory walls 10. Direct Materials used in manufacturing goods 11. Insurance of plant machinery 12. Account clerks wages 13. Oil can for machinery 14. Direct expenses incurred to produce goods 15. Fuel for Salesmen vehicles 4 Production Overhead ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Level 2 Book-keeping and Accounts Manufacturing Accounts Quiz Instructions: Match the accounting term on the left with the appropriate statement on the right.
Accounting Term Statement 1. Direct Materials a. The sum of prime costs and production overheads 2. Indirect Labour b. Expenses not directly traceable to production of output 3. Production Overheads c. Cost of raw materials used in finished product 4. Indirect Expense d. Materials not directly traceable to production of output 5. Direct Expense e. The sum of indirect costs: labour/materials/expense 6. Cost of Production/Manufacturing f. Labour/staff not directly involved in production of goods 7. Direct Labour g. The sum of direct costs: labour/materials/expense . Indirect Materials h. Costs incurred for management, legal charges, stationary etc 9. Prime Cost i. 10. Selling and Distribution overheads j. 11. Administration overheads k. Labour required for producing finished product Non labour and material cost identified with producing finished product Costs incurred for commission, carriage, advertising etc 5 EDI International House Siskin Parkway East Middlemarch Business Park Coventry CV3 4PE UK Tel. +44 (0) 8707 202909 Fax. +44 (0) 2476 516505 Email. [email protected] com www. ediplc. com 6