TH1706

Laboratory Exercise
Recipe Costing
Objective:

At the end of the exercise, the students must be able to:

 Calculate recipe costs.

Materials:

 Pen
 01 Laboratory Worksheet 1
 Calculator

Basic Principles:

As part of the requirements of this course, you must demonstrate your knowledge and skills in Philippine
Regional Cuisine through a food exhibit. In this activity, you will be presenting different dishes to a large
audience. This means that you will need to monitor the costs for setting up this event and ensure that you
are operating within the budget. One way to do this is through recipe costing.

Finding the Recipe Cost

These are the steps in finding the recipe cost:
1. Know the quantity of ingredients and its cost in the recipe.
2. Know the as purchased cost (AP).
3. Find the as purchased cost per unit (APC).
4. Find the yield percentage (YP).
5. Find the edible portion cost per unit (EPC).
6. Find the actual ingredient cost.
7. Calculate the recipe cost.
8. Calculate the cost per serving.

Here is an example of how to calculate the food cost.

GIVEN PROBLEM: Your restaurant purchased 20 kg of potatoes for Php 3,080.00. Upon cleaning, peeling, and
trimming, you had 3.40 kg of waste.

STEP 1. Know the quantity of ingredients and its cost in the recipe
The first step is knowing the quantity of the ingredient needed for a recipe. The ingredient before it is
cleaned, peeled, or prepared is called the as purchased quantity (APQ). To understand better, this is the
actual quantity and state of an ingredient as you receive it from the vendor.

01 Laboratory Exercise 1 *Property of STI

Page 1 of 5
 TH1706

Once the ingredient has been cleaned, cut, peeled, prepared, or is ready for use (fabricated), this now
becomes the edible portion of the ingredient. The quantity of the ingredient that has been fabricated is
called edible portion quantity (EPQ). The portions that will not be used is called the trim. The formula for
EPQ is
Edible Portion Quantity = As Purchased Quantity – Trim
OR
EPQ = APQ – Trim.

From the given problem, it says that the as purchased quantity is 20 kg and the trim is 3.40 kg. To find the
EPQ, simply subtract the trim from the APQ.
EPQ = 20 kg – 3.40 kg
EPQ = 16.60 kg

STEP 2. Know the As Purchased Cost (AP)

The as purchased cost (AP) is the amount paid to the vendor for the total quantity of an ingredient.
From the given problem, we know that the AP is P3,080.00.

STEP 3. Find the As Purchased Cost Per Unit (APC)

This is the cost per unit of an ingredient prior to fabrication. The formula for as-purchased cost/unit (APC) is
As Purchased Cost Per Unit = As Purchased Cost / Number of Units
OR
APC = AP/Units.

To find out the as purchased cost per unit of the potatoes, divide the as purchased cost by the amount that
was purchased.
APC = Php 3,080.00 / 20 kg
APC = 154 per kg

STEP 4. Find Yield Percentage (YP)

Yield percentage (YP) is the edible percentage of an as purchased ingredient. It is used for adjusting the as
purchased cost to compensate for the trim loss. The formula for YP is
Yield Percentage = (Edible Portion Quantity / As Purchased Quantity) * 100
OR
YP = (EPQ / APQ) * 100.
Then, divide the edible portion quantity by the as purchased portion quantity. Afterward, multiply it by 100 to
get the percentage.
YP = (16.60 kg / 20 kg) x 100
= 0.83 x 100
= 83%

STEP 5. Find the Edible Portion Cost Per Unit (EPC)

This is the cost of an ingredient after fabrication. The formula for edible portion cost per unit (EPC) is
Edible Portion Cost Per Unit = As Purchased Cost per unit / Yield Percentage in decimal form
OR
EPC = APC / YP in decimal form.
01 Laboratory Exercise 1 *Property of STI
Page 2 of 5
 TH1706

To find the EPC, divide the as purchased cost by the yield percentage. Use the decimal form of the yield
percentage when doing this.
EPC = 154 / 0.83
EPC = Php 185.5421687 or Php 185.54 per unit*
*Round off the amount to two (2) decimal places for easier computation. Do the same on all
calculations.

STEP 6. Find the Actual Ingredient Cost

This is the actual cost of an ingredient in the recipe. The formula for actual ingredient cost is
Actual Ingredient Cost = Edible Portion Quantity * Edible Portion Cost Per Unit
OR
Actual Ingredient Cost = EPQ * EPC.

Then, multiply the edible portion quantity to the edible portion cost per unit to find the actual ingredient cost
of the potatoes.
Actual Ingredient Cost = 16.60 kg * Php 185.54
Actual Ingredient Cost = Php 3,079.964 or Php 3, 079.96

STEP 7. Calculate the Recipe Cost

Once the cost of all ingredients in a recipe is found, all of them may now be added to find the actual Recipe
cost. Some ingredients, however, have 100% yield like sugar, flour, and salt. For these types of ingredient,
the as purchased cost will be used as the edible portion cost for the ingredient. See examples below.
Actual Ingredient Costs:
Potatoes = Php 3,079.96
Oil = Php 320.00
Salt = Php 48.00
Recipe Cost = Php 3,079.96 + Php 320.00 + Php
48.00 Recipe Cost = Php 3,447.96

STEP 8. Calculate the Cost Per Serving

This is the cost of a single portion of a recipe. To find the cost per serving, simply divide the recipe cost by the
number of servings of the recipe. The formula is
Cost Per Serving = Recipe Cost / Number of Servings
Let’s say that the restaurant makes 100 servings of French fries out of the 20 kilos of potatoes that was
ordered. The cost per serving would be
Cost Per Serving = Php 3,447.96 / 100
Cost Per Serving = Php 34.4796 or Php 34.48

References:
Culinary Institute of America. (n.d.). Kitchen calculations [PDF file]. Retrieved from
https://www.ciachef.edu/uploadedFiles/Pages/Admissions_and_Financial_Aid/Educators/Educational_Materials/Technique_of_
the_Quarter/techniques-calculations.pdf
Simpson, E. (2015). Recipe costing. Retrieved from Vancouver Community College Learning Centre's website:
https://library.vcc.ca/learningcentre/worksheets/baking_math.cfm
Tetreault, A. (2017, May 22). Food cost formula: How to calculate for food cost percentage [Web log post]. Retrieved from Toast
Restaurant Blog: https://pos.toasttab.com/blog/how-to-calculate-food-cost-percentage

01 Laboratory Exercise 1 *Property of STI

Page 3 of 5
 TH1706

Procedures:
Name: Mojica, John Russel C. Course: BSHM2A

Answer the following practice problem sets. Use the space provided for your solution. Or, have another Word
file. Send your output via eLMS Dropbox.

1. Identify the edible portion quantity (EPQ), as purchased cost per unit (APC), yield percentage (YP), edible
portion cost per unit (EPC), and the actual ingredient cost.

A. La Venezia Restaurant purchased 35 kg of tomatoes for Php 2625.00. After processing the tomatoes
to make pasta sauce, it produced 1.6 kg of waste.

EPQ APC YP
EPQ = APQ - Trim AP
APC = AP/Units YP = (EPQ/APQ) x 100
= 35kg - 1.6kg = 2625.00
= 2625.00/35kg = (33.4kg/35kg) x 100
= 33.4kg = 75kg = 0.95 x 100
= 95%

EPC
Actual Ingredient Cost
EPC = APC/YP in decimal form
Actual Ingredient Cost = EPQ x EPC
= 75kg/0.95
= 33.4kg x 78.95
= PHP 78.95 per unit
= 2636.93

B. Seoul Grill ordered 15 kg of beef short ribs for the Kalbisal BBQ which cost Php 5100.00. The bones
and fat trimmings amounted to 3.2 kg.

EPQ
AP APC YP
EPQ = APQ - Trim
= 5100.00 APC = AP/Units YP = (EPQ/APQ) x 100
= 15kg - 3.2kg
= 5100.00/15 = (11.8kg/15kg) x 100
= 11.8kg
= 340 kg = 0.79 x 100
= 79%

EPC Actual Ingredient Cost

EPC = APC/YP in decimal form Actual Ingredient Cost = EPQ x EPC
= 340kg/0.79 = 11.8kg x 430.38
= PHP 430.38 per unit = 5078.48
01 Laboratory Exercise 1 *Property of STI
Page 4 of 5
 TH1706

2. Calculate for the edible portion quantity (EPQ), as purchased cost per unit (APC), yield percentage (YP),
edible portion cost per unit (EPC), actual ingredient cost (AC), total recipe cost, and cost per serving.

Ginataang Kalabasa
Serves 4 persons

As As
Ingredient Purchased Trim Purchased EPQ APC YP EPC AC
Quantity Cost
Shrimp 500g 100g Php 325.00 400g 0.65g 80% 0.81/unit 324
Long Beans 250g 30g Php 21.00 220g 0.084g 88% 0.10/unit 22
Squash 500g 85g Php 50.00 415g 0.1g 83% 0.12/unit 49.8
Coconut 300g 100g Php 20.00 200g 0.067g 67% 0.1/unit 20
TOTAL RECIPE COST 416
RECIPE COST PER SERVING 104

01 Laboratory Exercise 1 *Property of STI

Page 5 of 5