LUCIANO B.

RAMA SENIOR MEMORIAL NATIONAL HIGH SCHOOL

Esperanza, Poro, Cebu
Division of Cebu
Cebu Province
District of Poro

SELF-LEARNING HOME TASK (SLHT)

Subject TLE-8 COOKERY Grade ALCB-8 Quarter 2 Week 5

MELCs: Calculating Cost of Production Competency Code:

Name __________________________________ Section _______________ Date __________________

School ___________________________________ District ________________

A.Readings/Discussions

Cost of production is the total price paid for resources used to make a product or create a service to sell including raw
materials, labor, and overhead.

It is calculated by dividing the outputs produced by a company by the inputs used in its production process.
Common inputs are labor hours, capital and natural resources, while outputs are generally measured in sales or the number
of goods and services produced.

To calculate the cost of food production, you need to know the total cost of your ingredients along with how much each
ingredient is used in a recipe. This is important to know how much a product costs.

To do this, you multiply per-unit price by the item you buy.. Add up all these individual prices to find the total food cost for
your dish. Calculating the cost of food production is important tool in order to determine the cost of the food produced.
Principles of Costing
In a food business you need to know the total cost of the product before you will sell it.

The following are the things to consider in calculating the cost of the product.
1. Markup - is the amount added to the price cost.
It can also be stated as a permanent amount or as percentage of the total cost.
2. Selling price - is the price at which a product or service is sold.
3. Purchase Cost - is the price a buyer pays for the food bought.
4. Yield - is the amount of usable product after it has been
processed.
5. Total Cost - is the total cost of food production.
Calculating Markup& Selling Price
Formula:
 1. Peso Markup = Purchase Price – Selling Price

2. Percent Markup = Peso Markup ÷ Selling Price

3. Selling price = Total Cost + Peso Markup

No. of Yield

Example No. 1
Compute the SELLING PRICE of ICE CANDY product if given the following estimated cost of ingredients which produced
35 pcs. with 50% peso mark up.
PRODUCT INGREDIENTS PURCHASE COST
Ice Candy 2 cups Shredded young coconut 30.00

½ Kilo sugar 30.00

1 can condensed milk 35.00
Ice candy wrapper 30.00
TOTAL P _________________
SOLUTION:
Selling Price =Total Cost + Peso mark-up
No. of Yield
To get the 50% peso markup, the formula is = (TOTAL COST x 50% MARKUP)
105.00 x .50 = 52.5
SELLING PRICE = 105 + 52.50 = 197.50 ÷ 35 pcs. Ice candy = 4.5 or
or 5.00 each ice candy
Example No. 2
Compute the PESO MARKUPand the SELLING PRICEof PULVORON Product if given this estimated cost of
ingredients which produced 50 pcs. Pulvoron with 50% markup.

PRODUCT INGREDIENTS PURCHASE COST

PULVORON ½ kilo cake flour 25.00

¼ kilo sugar 35.00

1 small pack powdered

Milk (330g) 45.00

Wrapper 5.00
TOTAL P110.00
FORMULA:
PESO MARKUP = (TOTAL COST X 50% MARKUP)
110.00 X .50 = P55.00
SELLING PRICE = TOTAL COST + PESO MARKUP
No. of Yield
= 110.00 + 55.00 = 165.00 ÷50 pcs. = 3.3

Activity 1.

Directions: Compute the estimated purchase cost of this Chicken Adobo recipe and impose 50% markup to determine the
selling price with total servings of 24. Show your solution.

Item Unit cost Total Cost

2 K chicken 115.00/kilo 230.00
1 head of garlic 50.00/kilo 20pcs/kilo 2.50
4 Tbsp soy sauce 15.00/bottle Approx. 32T 1.90
1 tsp ground black pepper 1.00/ small pack ½ t/pack

2.00
1/2 cup vinegar 12.00/bottle Approx. 2 C/bottle

3.00
2Tbsp cooking oil 40.00/bottle Approx. 32T 2.50
TOTAL P _______________
FORMULA:
SELLING PRICE = Total Cost + Peso markup
No. of yield

Activity 2.

Directions:Choose the answer from the box to complete the statements below.

Selling Price Markup

Total Cost Purchase Cost

Yield Costing Ingredients

1. ___________ is the amount added to the price cost of goods.

2. The price a buyer pays for the food bought is called . ___________

3. ___________is the amount of usable product after it has been processed.

4. . ___________ is the price at which a product sold.

5. The totalcost of production is called. ___________.

Activity 3.

Directions: Complete the table below by answering the peso markup and the percentage markup.

FORMULA:

Peso Mark-up = Selling Price - Buying Price

Percentage Markup = Peso markup ÷ Selling price = Percentage markup

ITEM Purchase cost Selling Price Peso markup Percent markup

Yema 2.00 3.00 Ans. 1.00 33%

Chicharon 25.00 35.00 ---------------- ----------------

Banana Q 4.00 5.00 ---------------- ----------------

B.Assessment/Application/Outputs (Please refer to DepEd Order No. 31, s. 2020)

MULTIPLE CHOICE

A. Directions: Choose the correct answer of the following items. Write only the letter of the correct answer.

1. It is an important tool in deriving your food cost.

A. Standard recipe B. Costing sheet C. Costing principle D. Ingredient costing
2. In the principles of costing, the term used to add in the price cost is called _____________.

A. Percentage markup B. Item cost C. Selling price

3. The total price paid for a resources used is called ________.
A. Mark up B. Food cost C. Selling price D. Buying price
4. ________is the total amount you pay for the product you bought.

A. Peso markup B. Percentage markup C. Buying price D. Selling price

5. The total cost of food net in an existing inventory is called ________.

A. Food cost B. Costing C. Product D. Calculation

6. It is used to substitute 1 cup miniature marshmallow.

A. 10 large marshmallows B. 1small marshmallows C. 30 large marshmallows D. 30 small marshmallows
7. This is the number of pieces produced in a recipe.
A. Product B. Yield C. Total D. Amount
8. This is needed to get 1 cup of sugar?
A. 4T B. 8T C. 12T D. 16
9. It is needed to measure small amount of liquid.
 A. tablespoon B. teaspoon C. measuring cup D. glass
10. Which is the first procedure in measuring dry ingredients like
A. Level off with spatula B. Sift the flour C. Do not shake D. Scoop to fill the measuring cup to overflow
11. Compute the purchase price of an item if the selling price is 10.00 and the markup is 20%?
A. 5.00 B. 2.00 C. 12 D. 4.00
12. What is the markup percentage if the purchase price is 15.00 and the selling price is 20.00?
A. 25% B. 10% C. 5% D. 2%
13. What is the formula for peso markup?
A. Purchase price – Selling Price B. Purchase price + Selling Price
C. Purchase price/Selling Price D. Selling price x Purchase Price
14. To measure dry ingredients in measuring cup it must be. _________.
A. overflowing B. stirring C. sifting D. lifting
15. To measure a _________is to pack with a spoon.
A. brown sugar B. oil C. juice D. vinegar

References:
Zyraquilalaregino. “kto12tle-Homeeconomicslm-Commercialcooking-140702063521-phpapp02.Pdf - Page Cover
Page Title Page Table of Contents Introduction: Course Hero.” kto12tle-homeeconomicslm-commercialcooking-
140702063521-phpapp02.pdf - Page Cover Page Title Page Table of Contents Introduction | Course Hero, February
5, 2018. https://www.coursehero.com/file/28140414/kto12tle-homeeconomicslm-commercialcooking-
140702063521-phpapp02pdf/.
Zyraquilalaregino.“kto12tle-Homeeconomicslm-Commercialcooking-140702063521-phpapp02.Pdf - Page Cover
Page Title Page Table of Contents Introduction: Course Hero.” kto12tle-homeeconomicslm-commercialcooking-
140702063521-phpapp02.pdf - Page Cover Page Title Page Table of Contents Introduction | Course Hero, February
5, 2018. https://www.coursehero.com/file/28140414/kto12tle-homeeconomicslm-commercialcooking-
140702063521-phpapp02pdf/.

Prepared by:

JOEL R. SURALTA
Teacher 1 LBRSMNHS Poro District

Reviewed by:

JOEL C. ROJAS
School Head LBRSMNHS Poro District
 GUIDE

For the Teacher:

Advise the students to read the Reading and Discussion portion before they attempt to answer the practice exercises. Let the
students go through the parts sequentially to help them understand the topic easily. The Key Answers are for you to answer
during the checking. Don’t include it in the printing.

For the Learner:

Read thoroughly and understand the Self-Learning Home Task from the first part to the last part. By doing so, will help you
understand better the topic. If you still have enough time, do it twice for more understanding. You can use a dictionary, if
you find it hard to comprehend the science terms. Use a separate sheet for your answers.

For the Parent/Home Tutor:

Assist your child and make sure that he/she reads the Self-Learning Home Task from the beginning up to end, to ensure
better understanding of the concepts. Don’t feed the answers to your child. Let him/her do it of his own.

ANSWER KEY:
2. A 12. A

5. A 15. A
3. B 13. A

4. C 14. A
1. D 11. B
Assessment

10. A
6. A

8. A

9. A
7. B

Item Unit cost Total Cost

2 K chicken 115.00/kilo 230.00
1 head of garlic 50.00/kilo 20pcs/kilo 2.50
4 Tbsp soy 15.00/bottle Approx. 32T
sauce 1.90
1 tsp ground 1.00/ small pack ½ t/pack
black pepper 2.00
1/2 cup vinegar 12.00/bottle Approx. 2 C/bottle
3.00
2Tbsp cooking 40.00/bottle Approx. 32T
oil 2.50
TOTAL 241.9

Selling price = Total cost + Peso mark-up

No. of yield

SP = 241.90 + 120.95 = 362.85

24 24

SP = P 15.118 orP 15.00