COSTING REVIEWER

Example Problem:
Roasted Cabbage
Portion: 4 Pricelist
Ingredients: Quantity Olive Oil P150.00 / ml
Olive Oil 30 ml Cabbage P105.00 / kg
Cabbage 600 g Pepper Flakes P71.00 / 200g
Pepper Flakes 40 g Garlic Powder P15.75 / 50g
Garlic Powder 40 g
**1KG = 1000 g
**1L = 1000 ml

Calculate the unit price, ingredient cost, total recipe cost, cost per portion.
Ingredients Unit price Ingredient cost
Olive oil
Cabbage
Pepper Flakes
Garlic Powder
Total Recipe Cost:

Cost per Portion:

See solving and answers on the next page >>>

To get the unit price (this is the price of every ingredient per unit)
You’ll just simply need to divide the price list itself.
Pricelist
Olive Oil P150.00 / ml
Cabbage P105.00 / kg
Pepper Flakes P71.00 / 200g
Garlic Powder P15.75 / 50g

Let’s do the Pepper Flakes first, you will simply divide P71.00 to 200.
So the answer is 0.355. Don’t forget to include the unit, no unit is wrong.
Since it is a unit price, you’ll simple copy the original label…

Therefore, the unit price of Pepper Flakes is P0.355/g

Next, let’s do the Cabbage. In the ingredients list, cabbage is 600g, it is in (g) or grams.

Roasted Cabbage
Ingredients: Quantity
Olive Oil 30 ml
Cabbage 600 g
Pepper Flakes 40 g
Garlic Powder 40 g
But in the price list it is in KG or kilograms. So, you need to convert first KILOGRAM to GRAM.
Simply 1KG = 1000 g
Pricelist
Olive Oil P150.00 / ml So, you can now compute for its unit price. By dividing 105 to
Cabbage P105.00 / kg 1000
Pepper Flakes P71.00 / 200g
Garlic Powder P15.75 / 50g

Unit price of Cabbage is P0.105 / g

*Again, before you compute the unit price, the price list and ingredient
list should first have the same label. Like what I did, I converted it first.
This is the complete answer in the unit price.

Now, try compute it on yourself.

To get the ingredient cost (the cost of each ingredient)

You will just multiply quantity and the unit price:
*Formula: Quantity X Unit price = Ingredient cost
Roasted Cabbage
Portions : 4
Ingredients: Quantity
Olive Oil 30 ml
Cabbage 600 g
Pepper Flakes 40 g
Garlic Powder 40 g

Olive oil: 30 ml X Php0.60 / ml = Php18.00

Cabbage: 600 g X Php0.105 / g = Php63.00
*Try to compute the remaining.
*Label will be just the Currency for ingredient cost, since the units will
be cancelled.
Total Recipe Cost is just the sum of all ingredient costs.

Php18.00 + Php63.00 + Php14.20 + Php12.60 = Php107.80

*Label is also just the Currency.

And lastly, Cost per Portion

*For this, it is important to look carefully on the recipe to find the
recipe portion. It is usually given. So, in our case, this recipe portion
is 2. You can look for it above.
Roasted Cabbage
Portion: 4
Ingredients: Quantity
Olive Oil 30 ml
Cabbage 600 g
Pepper Flakes 40 g
Garlic Powder 40 g

Formula: You will just need to divide the Total Recipe Cost to the
portion.
Total Recipe Cost / Portion = Cost per Portion
Php 107.80 / 4 = Php 26.95

Cost per Portion is Php 26.95

HERE’S THE COMPLETE ANSWER
Ingredients Unit price Ingredient cost
Olive oil Php 0.60 / ml Php 18.00
Cabbage Php 0.105 / g Php 63.00
Pepper Flakes Php 0.0355 / g Php 14.20
Garlic Powder Php 0.315 / g Php 12.60
Total Recipe Cost: Php 107.80

Cost per Portion: Php 26.95