LEARNER’S PACKET NO.

5
QUARTER 1

Name of Student:
Learning Area/Grade TLE- HE-Exploratory Commercial Cooking
Level: -Grade 7/8
Date: WEEK 5
Activity Title: Calculate Cost of Production

I. INTRODUCTORY CONCEPT:

The principles of costing and computation of the cost of production is referring to the
total cost incurred by a business to produce a specific quality product or services. In
calculating the cost of production we need to determine the fixed cost, estimate the variable
cost and by adding fixed costs to the variable cost and divide by the number of items
produced thus reaching the production cost for one item.

Principles of Costing:

The cost principle is an accounting principle that records assets at their respective
cash amounts at the time the asset was purchased or acquired. The amount of the asset
that is recorded may not be increased for improvement in market value or inflation, nor can it
be updated to reflect any depreciation.

Three Principles of Food Costing:

1. Suppliers selection. It is the process by which firms identify, evaluate and contract
with suppliers. The main objective of supplier selection process is to reduce
purchase risk, maximize overall value to the purchaser, and develop closeness and
long-term relationship between buyers and suppliers
2. Goods Receiving Control. All goods are received at the centralized receiving
department within specific time only, under the supervision of the receiving clerk.
3. Balancing Menu. There should be a fine balance for popular and profitable food
items. This means you will have low and high cost items on your menu and it is
important that you need to place add-on carefully to attract your customers to buy in
to make the balance.

The Importance of Costing and Pricing

Costing is important to ensure that all expenses are covered and the group fixes a
price that ensures a profit.
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 The first and most important step is to identify all the costs of business: production,
sales, administrative, overheads, etc. The next step is to classify costs into fixed and
variable costs.

Pricing is important since it defines the value that makes it worth it for you to make
and for your customers to use your product. It is the tangible price point that lets customers
know whether it is worth their time and investment.

How to Calculate Markup Percentage

Markup is the difference between how much an item costs you, and how much you
sell that item for it's your profit per item. Any person working in business or retail will find the
skill of being able to calculate mark-up percentage very valuable.

Instructions

1. Calculate your peso mark-up. This is done by subtracting your buying price from your
selling price.

Example:
Selling price 15.00
Purchase cost/buying price - 10.00
Peso mark-up 5.00

2. Decide whether you want to calculate your percentage mark-up based on cost or selling
price. Once you choose which you will be using to calculate, it is important you stick to the
method you choose throughout all your calculations, or you will end up with faulty data. If
you decide to calculate your percent mark-up based on cost, go on to Step 3. If you decide
to calculate your percent mark-up based on selling price go on to Step 4.

3. Calculate percent mark-up based on cost. This is done by dividing the peso markup by the
cost.

Example:
Peso mark-up 5.00
Purchase cost/buying price ÷10.00
Percentage mark up .5 or 50%

4. Calculate your percent mark-up based on selling price. This is done by dividing the peso
mark-up by the selling price.

Example:
Peso mark-up 5.00
Selling price ÷15.00
Percentage mark up .33 or 33%

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5. Make sure you consistently use cost of the product or selling price to find the percent
mark-up on an item. Even though the cost, selling price, and peso mark-up will always be
the same, the percentage mark-up will be drastically different depending on if you calculate it
using selling price or cost. Using selling price will give you a lower percentage mark-up
(assuming you are making a profit), while using cost will give you a higher percentage mark-
up.

II. LEARNING SKILLS FROM MELCs:

LO 5. Calculate cost of production
5.1 Discuss principles of costing.
5.2 Compute cost of production.

III. LEARNING ACTIVITIES:

A. Directions: Given the following recipe (Maja Blanca) and its estimated cost,
compute for the total purchase cost and impose a 50% mark-up to determine the
selling price of your product.
Item Price
2 c. cornstarch 20.00
2 c. white sugar 25.00
7 c. cocomilk 50.00
1 c. evaporated milk 20.00
½ c. shredded buko 25.00
1 tsp. vanilla .50
TOTAL

Selling Price = Total cost + Peso mark-up No. of yield: 24 SP= _____

Performance Task 1

Direction: Given the following ingredients and its estimated cost, compute for the total
purchase cost and impose a 50% mark up to determine the selling price of your product.
Submit your outputs through online to your teacher or if you don’t have internet connection
submit the written output.
Chicken Adobo Yield: 24 servings

Item Unit cost Total Cost Peso Mark-up Selling Price

per serving
1 Head of Garlic 110/per Kilo
10 pcs/kilo
1 ½ kl Chicken 180/ kilo
½ cup soy 20/bottle
sauce 330ml /bottle
1 pc. onion 120/kilo
18 pcs/kilo
¼ cup oil 20/ bottle
330 ml/bottle
1 tsp. pepper 5.00/ tbsp.
*The prices indicated are the current price value of goods in July 2021.
*Apply the lessons you learned in Measurement and Conversions from Learner’s Packet #4
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Formula:
Mark Up= Total cost*50% mark up
Total Cost= Given Fixed price - Purchase price

Performance Task 2
Title: COST OF PRODUCTION OF CASSAVA CAKE
PERFORMANCE OBJECTIVE: Compute the cost of production
Supplies and Materials: pen and paper / recipe
STEPS/ PROCEDURES:
1. Read again how to compute the cost of production.
2. Read the recipe given.
3. Compute for the cost of production.
CASSAVA CAKE
Ingredients:
Procedures:
3 kls. Cassava
1 can evaporated milk 1. Grate cassava. Set aside. Line the
1 can condensed milk rectangular pan. Set aside. Melt margarine.
6 cups coconut milk Mix together all liquid ingredients and remain
5 pcs eggs 2 cups of mixture. Add the liquid ingredients
¼ c margarine to the grated cassava. Mix thoroughly until
1 tsp. Vanilla extract mixture well blended. Bake for 40-50
1 bar cheese for toppings minutes. Add cheese for toppings and the
remaining liquid mixtures. Bake again in 20
For lining:
minutes until the top shine.
Aluminium foil

Fill the needed data.

Ingredients Quantity Unit cost Total Cost

TOTAL PRODUCTION COST: _______________

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 Assessment Method: Performance Criteria Checklist
Learner’s Name Date:
Competency: Test Attempt
Calculate Cost of Production 1st 2nd 3rd
Directions: OVER-ALL EVALUATION
5= 100 5- Complete computed correct answers of data. .
4= 90 4- Computed but has 1- 3 wrong answer.
3= 85 3- Computed but has 4- 6 wrong answer.
2= 85 2- Computed but has 7- 9 wrong answer.
1= 80 1- Failed to compute of cost of production
Note:
Teacher’s remarks will be indicated on the corresponding level achieved by
the learners after sending through online or answer on separate paper and
submit to you teacher for checking.

B. Reflection:

1. How does mark-up help in a business?

___________________________________________________________
___________________________________________________________
___________________________________________________________

2. What is the importance of costing?

___________________________________________________________
___________________________________________________________
___________________________________________________________

IV. RUBRICS
Scoring Rubric
SCORE CRITERIA
10 The statement in the reflection relates entirely to assign
topic or issue. The work is original.
8 The statement conveys a genuine personal view
regarding the topic or issue.
6 The statement deviates slightly from the topic.

V. ANSWER KEY

A. Activity1.
Total Cost = 140.50
50% mark-up = 70.25
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 Cost of production = 210.75
Selling Price = 8.78/piece

B. Refer to scoring rubrics

VI. REFERENCE:

Education, Department of. 2012. Commercial Cooking Exploratory Grade 7 and 8.

Pasig City: Education, Department of.pp. 49-52

Note: Practice Health

Protocols at all times.

Prepared by: Validated by: Edited by:

MARIFE R. ARROCO MELINDA C. CHAVEZ ALBERTO NOLASCO

Reviewed by:

LALAINE V. FABRICANTE
EPS-I

RO_TLE-HE-Commercial Cooking_Grade 7/8_WK5_Q1_LP 5