Materials Shakers and Sifters Guide

Materials Shakers and Sifters

This text is an excellent introduction to financial statements and management accounting (manufacturing accounting techniques). The learner will be shown a completely realistic factory situation.  This manufacturing and retail (the business also resells items) situation will comprise of all the components of the basic financial statements. This text also shows all the basic components of a manufacturing scenario. 

Topics covered for financial statements:

·         Factory Overhead

·         Direct and In-Direct Labour including sub-contractors.

·         Raw Materials

·         Work -in –Process

·         Finished Goods

·         Inventory (resale of purchases, ie buying goods and reselling them (Not relating to manufacturing)).

·         Factory Equipment

·         Period Cost

o   Office Wages in appropriate categories.

o   Selling, General admin and financial expenses

·         A3 page with complete pictorial overview of the factory and office components in financial statement format.

Topics covered for management accounting:

·         All topics mentioned previously

·         Stock and its relation to the manufacturing process.

·         Manufacturing process described in detail.

·         Introduction to all the staff members, their functions, and how they relate to the costing centers and financial statements. 8 staff + 1 sub-contractor.

·         Explanations after realistic components of the factory and office have been displayed, in a logical order to assist the learner:

o   Product Cost

o   Variable Cost

o   Period Cost

o   Fixed Cost