LEARNING OUTCOME 4

Compute the
costs of
production
 LO4. IMPORTANCE OF RECORDING AND
DOCUMENTING PRODUCTION INPUT
1.It gives us a reference data on the materials used
together with their correct magnitude.
2.It determines the economic viability of the
product.
3.Records serve as a basis for planning.
4.Records greatly help in making right decisions.
 Steps in recording and documenting production input are as
follows:

1. First, weigh all materials and ingredients needed.

2. Second, make a necessary listing in your notebook of
all the materials and ingredients used. It is important
to note how much or how many. This is what we call
recording or documentation.
3. Third, follow the correct format in documenting and
recording.
Sample of Production Report
Product Name: Pickled / Marinated Milkfish
Production Date: February 26, 2012
Description of Materials:
Fresh Milkfish 1000 g

Other Ingredients:
Distilled vinegar 250 g
Calamansi juice 125 g
Soy sauce 125 g
Salt 75 g
Sugar 75 g
Black Pepper 15 g
Minced Garlic 15 g
Input: 1680 g
Output:

Marinated Fish 1200 g

Wastage: 480 g

Yield: 71 %

Problem Encountered: NONE

 Sample of Production Cost
Product: Pickled Mixed Vegetables:

I. Raw Materials and Ingredients:

Items Quantity wt/ml /gms Cost (P)
Chayote 3 kls 3000 g 60.00
Carrots 6 pcs 550 g 30.00
Red bell pepper 4 pcs 80 g 5.00
Ginger 2 pcs 270 g 10.00
Garlic 2 pcs 100 g 5.00
Onion 3 pcs 165 g 10.00
Sugar 1 ½ cups 375 g 25.00
Vinegar 1 ½ cups 400 g 10.00
Raisins 1 pack 100 g 25.00
Salt 1 cup 250 g 2.00
TOTAL 182.00
II. Packaging Materials
1. Preserving jars 8 pcs. x P 5. 00 = P 40. 00
2. Label 8 pcs. x P 1. 00 = P 8. 00
= P 48. 00

III. Overhead Expenditures

1. LPG / fuel for cooking P 2. 00
2. Tranportation P 7. 00
3. Water P 10. 00
=P 19. 00

Grand Total = P 249. 00

IV. Number of finished products - 8 jars

V. Net Weight - 250 gms
VI. Mark up price (20 % of Grand Total) - P 49. 80
VII. Selling Price - P 37.35