ADVANCED ACCOUNTING

PRINCIPLES 2 (AP 127)

UNIT 2: MANUFACTURING CONCERNS
AND SPECIAL JOURNALS

Name of Student: ……………………………………………………………………………………….. Set: ………… Block & Schedule: ……………………

Address: …………………………………………………………………………… Course & Year: …………………………. Date Returned: ……………….

FB Account: ……………………………………… Email Address: …………………………………………………Contact #: …………………………………..

GADTC-INSTITUTE OF BUSINESS AND FINANCIAL SERVICES | MALORO, TANGUB CITY, MIS.OCC.

GOV. ALFONSO D.TAN COLLEGE
MALORO, TANGUB CITY

VISION
GADTC is integral to Tangub City’s becoming a center
for learning and eco-cultural tourism by producing God-
centered citizens committed to be light of the world.

MISSION
To provide opportunities for continuing education for
faculty and staff, providing upgraded facilities for quality
and research-based instruction to students towards
community engagement and linkages to industry.

CORE VALUES
*INTEGRITY *COMPASSION
*EXCELLENCE

INSTITUTIONAL LEARNING OUTCOMES

Alfonsos as Lux Mundi: Serving Humanity
with Empowered Mind, Passionate Heart and
Virtuous Soul.

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 ALFONSOS ATTRIBUTES

GLOBALLY COMPETETIVE GOOD SAMARITAN

PROFESSIONAL

GLOBAL CITIZEN GOD-CENTERED

CITIZEN

INSTITUTE OF
BUSINESS AND FINANACIAL
SERVICES
VISION
The Institute of Business and Financial Services is the
source of research-based knowledge and skills for
learning, leader in the preservation of the environment
and culture heritage and molder of the youth to become
God-centered citizens equipped with values on integrity,
compassion and excellence

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 MISSION

The Institute of Business and Financial Services, being

the learning arm of Gov. Alfonso D. Tan College,
commits by:
• Providing students and other stakeholders with the
research-based knowledge and skills for learning
and ideals for the preservations of environment
and culture heritage through community
engagement and linkages
• Developing within the students as indepth
strategies on eco-cultural insights and foresights.
• Transforming the student’s lives in line with
values on integrity, compassion and excellence.

GOALS AND OBJECTIVES

1. To engage in activities that can enhance student’s

awareness of the city’s environment and cultural
heritage and enhance their preservation, welfare
and development for the next generation to come
2. To ensure that the graduates of GADTC cannot be
caught off guard instead can go alongside with this
ever-changing business world.
3. To tie up linkages and collaboration with all
benefactors and stakeholders for the assurance of
the graduates’ employability everywhere in the
world as long as there are opportunities.

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 FOREWORD
The world is currently experiencing an economic
crisis due to COVID-19 pandemic. Universities, schools,
and other agencies must take its initiative in finding ways
to sustain its mainstream. Owing to this pandemic, the
education sector and other organizations are now willing
to adapt and adjust to the new normal, which is obviously,
using various technologies like Zoom, Google Classroom,
Facebook, Messenger, Canvas, etc. to connect to each
other and still able to carry out a personality.
“Online learning has been already being utilized
under progressive countries like China, South Korea, the
U.S, and India,” A.Hallberg, 2017. But for a third world
country like the Philippines, conducting an online class
would be a great hindrance to sustainable and continuous
education. In fact, the internet cost and access and
technical problems are considered barriers in online
learning.
According to C.A. Toquero, 2020,” there is also a
greater need for educational institutions to strengthen
the practices in the curriculum and make it more
responsive to the learning needs of the students even
beyond the conventional classrooms”.
However, there are still a lot of areas that do not
have internet connectivity, and still, a lot of Filipino
households’ do not have any smartphone. That is why
producing a module would help the students
tremendously to continue their education. This will be
effective and efficient tool as students need to do their
studies and activities at home. Also, learning on a

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physical book absorbs more information and is tailored
to fit with the asynchronous type of learning.
With, it is a condensed yet informative module as
it includes video transcription and further readings
provided for them to maximize their physical references
in their own homes as they embark on this new normal.

PREFACE
Maybe you are on the verge of having too many
choices and you need to make a specific decision for you
to move forward to the next phase of your desired career
path. Or maybe you are not sure of what you really need
and want as a young student considering that nowadays,
information technology, social media, and the like,
provide the opportunity for us to change our effectiveness
in decision-making.
Basic microeconomics will bring insight and
realization that what we are doing in our daily lives which
include decisions that we made is part of the economic
activities.
The most important part of this journey is that
you will be able to relate yourself to every lesson and
activity that you will be engaging in. Have your individual
take away until we reach our destination that will be
useful in your life-long learning.

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 INTRODUCTION
The previous course illustrated the accounting
cycle of entities that earned revenues by providing
services. A service business sells knowledge or expertise
while a merchandising business sells a particular or a
group of products. These products will be sold either
wholesale or retail in the same form that they were
bought.
In this course deals with the nature, scope and
limitation of the field of accounting affecting
merchandising operation organized as a sole
proprietorship. This is designed to meet the basic needs
of all business students, regardless of how accounting
records, techniques and methodologies are utilized to
present useful accounting information from mass of data.
Emphasis is placed on understanding the reasons
underlying basic accounting concepts and providing
students with adequate background in the recording,
classifying, summarizing, and interpreting functions to
enable them to appreciate the varied use of accounting
data.
This module composes the following parts, namely:
1. Take Part In (Engage)
Prior knowledge is activated and pre-assessed.
This is required but not graded.

2. Tour (Explore)
Investigate the phenomenon, prior knowledge is
challenged, ideas are created.

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 3. Spell Out (Explain)
Explain the phenomenon, new knowledge is
gained and applied.

4. Involve (Elaborate)
Application of knowledge towards new situations,
knowledge is deepened and extended.

5. Examine (Evaluate)
Reflection of knowledge and learning process,
assessment

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 Table of Contents

GADTC Vision, Mission, & Core Values ------------ 1

IBFS Vision, Mission, & Goals and Objectives -----------2
Foreword -----------------------------------------------------4
Preface --------------------------------------------------------5
Introduction ----------------------------------------------- - 6
Offline Etiquette ---------------------------------------------9
Unite Intended Learning Outcome ---------------------- 10
Pre-Assessment -------------------------------------------- 11
Lesson 1: Accounting for Manufacturing Concern ----- 13
Review Questions ------------------------------------------ 19
Lesson 2: Special Journals -------------------------------- 24
Review Questions ------------------------------------------ 35
Involve ----------------------------------------------------- 52
Examine ---------------------------------------------------- 58

Welcome On Board, Students!

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Instructor: _________________________
Contact#: __________________________
Email Address: _______________________

Fasten your seatbelt and wear your mask. Don’t forget to

check-in your name on the following online platform
indicated below to access information updates of our
class.
FB Group Page: _______ FB Account: ________
Offline Class Etiquette to follow:
1. Write Legibly. Clearly write your answers on the
space provided in the module
2. Only use your own module. Do not let other
students use you own module.
3. Keep your module clean and tidy. Do not draw or
doodle on your module.
4. Always bring your module with you during
classes.
5. Do not destroy your module book.
6. Be Proactive: Write down your concerns,
clarification under the discussion page provided to be
addressed.
7. You can do self-study thru the internet. Do some
research of about the lessons in case you need more
information about the discussion.

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GRADING SYSTEM:
Written Tasks
Performance Tasks
Final Exam
Total 100%

Passing Rate 65%

CONSULTATION SCHEDULE:

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MODULE 2:
Learning Outcomes:

At the end of this module, you will be able to:

a) Compare the activities prevalent to
merchandising and manufacturing entities.
b) Identify the elements of manufacturing costs.
c) List the manufacturing inventory accounts.
d) Show the Pro-forma entries of the common
transactions for a manufacturing entity.
e) Prepare a statement of cost of goods
manufactured.
f) Prepare a statement of cost of goods sold.
g) Pinpoint the differences in the worksheet of a
manufacturing entity as compared to a
merchandising entity.
h) Describe the use of controlling accounts and
subsidiary ledgers.
i) Explain the goals and uses of special journals.
j) Record transactions using special journals.
k) Post transactions to the general and subsidiary
ledger
l) Explain the distinguishing features of the
voucher systems.

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MANUFACTURING OPERATIONS AND
SPECIAL JOURNALS
We are going to understand the underlying concept
of Accounting in Manufacturing Operations. Also,
you will understand the difference between direct
and indirect materials, direct and indirect labor, and
manufacturing overhead well as their respective
entries.
Student’s let’s bring it on!

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 Pre-Assessment: This test is required but not graded.
Ta-da! Read and carefully understand the discussion as
You are
activities/quizzes willdoing
followgreat! So far,
afterwards. so good!
Rubric is attached as your basis
of assessment. Should you have any questions or topics that isn’t clear to
you, you may write it down at the discussion part below. Rest assured
that it will be addressed, and feedbacks will be given afterwards.

Discussion Begins!

LESSON 1:
ACCOUNTING FOR
MANUFACTURING
CONCERN

NATURE OF MANUFACTURING
The primary activity of a manufacturing concern is
to convert raw materials into finished goods. When
a manufacturer converts leather into a pair of shoes
or lumber into a furniture, these leather and lumber
are called Raw materials while the pair of shoes and
furniture are called Finished Goods.
ACCOUNTING SYSTEMS USED IN A
MANUFACTURING CONCERN
(1) Cost System and (2) Non-Cost System.

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Week: _______________Deadline: ______
Pre-Assessment: In a clean sheet of paper, please
answer the following questions. This test is required but
not graded.

1) Distinguishing between Direct Materials and

Indirect Materials.
2) Distinguishing between Direct Labor and
Indirect Labor.
3) What are the three (3) major types of
inventories of a manufacturing firm?
4) What is a prime cost?
5) What is a conversion cost?

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 We have discussed the first lesson in
this module. So far, so good! Do you
have any concerns and questions that
you would want to discuss? Write it
down below. Let me hear from you.
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If this space is not enough for you, don’t worry, you
can write it in a sheet of paper and don’t forget to
staple it in your module.
We have provided you a link for your additional
readings and references.
YouTube Videos:
https://www.youtube.com/watch?v=t74tZST
nTbE&t=8s

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Week: __________ Score: ______
Deadline: _______
Instruction: Answer the following questions below.

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You made it! You are ready to our
next destination!

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Discussion Begins
Lesson 2: SPECIAL AND
COMBINATION JOURNALS, and
VOUCHER SYSTEM

WHAT ARE SPECIAL JOURNALS?

Special Journals are books of original entries that

recorded specific transactions.

The use of a General Journal as a book of original entry

was over emphasized. As illustrated, the General Journal
Book will become voluminous and unwieldy because of
the nnumber of transactions recorded daily. Aside from
this, the only one person can have the knowledge and
control of the transactions because only one person can be
given task to do the recording in the General Journal.
When special journals are used, however, there can be
division of bookkeeping works because each book or
journal can record a specific transaction and therefore, one
person can be assigned to do the recording in the Cash
Receipts Journal, Sales Journal and so on and so forth.

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Week: _______________Deadline: ______
Pre-Assessment: In a clean sheet of paper, please
answer the following questions. This test is required but
not graded.

1) What are special journals?

2) What are advantages can be derived from the
use of Special Journals as compared with
having a General Journal only?
3) When special books of accounts are used, is
it still necessary to keep a general journal?
Why?
4) With the presence of the Special Journals,
what transactions are usually recorded in the
General Journals?
5) Enumerate the Special Books of Accounts.

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 We have discussed the first lesson in this
module. So far, so good! Do you have any
concerns and questions that you would
want to discuss? Write it down below. Let
me hear from you.
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
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…………………………………………………………
…………………………………………………………

If this space is not enough for you, don’t worry, you

can write it in a sheet of paper and don’t forget to
staple it in your module.

We have provided you a link for your additional

readings and references.

YouTube Video:
https://www.youtube.com/watch?v=S8F7_uQMpo4

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Instruction: Write “T” if the statement is correct
and “F” if incorrect.
_____ 1. Sale of merchandise on an account is
recorded in Cash Receipts Journal.
_____ 2. There can be division of labor when
special journals are used.
_____ 3. At the end of each month, entries in the
Special Journals are totaled while the entries in
General Journals are not.
_____ 4. Sale of merchandise for cash is recorded
in Sales Journal.

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Week: __________ Score: ______
Deadline: _______
Instruction: Encircle the letter of the correct
answer in each of the given question.
1. Merchandise bought on account is recorded
in the –
a. General Journal
b. Purchase Journal
c. Sales Journal
d. Cash Payments Journal
2. Which of the following can be recorded in
the General Journal when Special Journals
are used?
a. Closing Entry
b. Reversing Entry
c. Adjusting and Correcting Entry
d. All of the Above
3. Store supplies bought on account is to be
recorded in the –
a. General Journal
b. Purchase Journal
c. Cash Payments Journal

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 d. Sales Journal
4. When there is a sale of merchandise on
account, the entry in the Sales Journal will
require a debit to –
a. Accounts Receivable
b. Accounts Payable
c. Sales
d. Purchases

You made it! You are ready to our

next destination!

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Week: __________ Score: _______
Deadline: _______
Instruction: Prepare a worksheet and
provide what it asked on the given problem
below.

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Name:_________________Month: _______
Date: ________ Course & Year:___________
Home Address: _______________________
Email Add: ______________Contact #: ____
Facebook Account: ____________________

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Assessment Criteria/Rubrics

RUBRICS FOR ESSAYS

Needs Developing Sufficient (15) Above Average

Improvement (10) (20)
(5)
Clarity and The idea of the The central The central The central purpose
ideas student reflection purpose of the purpose of the of the student
is not well- student student reflection is clear
70% defined. Central reflection is reflection is and supporting
ideas are not identified. Ideas
clear and ideas ideas always are
focused to are generally are almost always well-focused.
support the focused in a wayalways focused Details are relevant,
thesis. Thoughts that supports in a way that enrich the work.
appear the thesis. supports the
disconnected. thesis. Relevant
details illustrate
the student’s
ideas.
Organization Information and Information and Information and Information and
ideas are poorly ideas are ideas are ideas are presented
20% sequenced (the presented in an presented in a in a logical sequence
student jumps order that the logical sequence which flows
around). The reader can which is naturally and is
reader has follow with followed by the engaging to the
difficulty minimum reader with little audience.
following the difficulty. or no difficulty.
thread of thought.
Mechanics There are five or There are no There are no There are no more
more misspellings more than four more than three than two misspelled
10% and/or systematic misspellings misspellings words or
grammatical and/or and/or grammatical errors
errors per page or systematic grammatical in the document.
8 or more in the grammatical errors per page
entire document. errors per page and no more
The readability of or six or more in than five in the
the work is the entire entire
seriously document. document. The
hampered by Errors distract readability of
errors. from the work. the work is
minimally
interrupted by
errors.

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References
Aduana, N. L. (n.d.). Fundamentals of Accountancy, Business,
Management 2. Draft Only For Evaluation.

Licuanan, P. B. (2016). Teaching Guide for Senior High School

Fundamentals of Accountancy, Business, and
Management 2. CHED K to 12 Transition Program.
Quezon City, NCR, Philippines: Commision on Higher
Education.

Lopez, R. M. (2019). Financial Accounting and Reporting.

Davao City: MS LOPEZ Printing & Publishing.

Ong, F. L. (2016). Fundamentals of Accountancy, Business,

and Management 1 for Senior High School. C & E
Publishing, Inc.

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