CALCULATE TLE 7

THE
PRODUCTION
INPUTS AND
OUTPUT
WEEK 5
MOST ESSENTIAL LEARNING
COMPETENCY
TLE_AFFP9-12MC-0d-2 LO2. Review various formulations
TLE_AFFP9- 12MC-0e-3 LO 3. Calculate the production inputs and
output

In this set of activities, you should:

1. define production cost,
2. compute the production cost and
3. demonstrate an understanding about the importance of calculating the
production inputs and output.
WHAT YOU NEED TO
REMEMBER
Before the lesson, let’s recharge a warm-up
question. Look at the following pictures below.
From the previous lesson, you have learned
Measurements and Conversions.

Let us recall how to convert the following

measurements below.
CONVERT THE FOLLOWING:
A. 16 tbsp = _________ cup
B. 2 tsp = _________ tbsp
C. 1 liter = _________ ml
D. 500g = _________kg
E. 8 tbsp = _________ tsp
UNLOCKING OF DIFFICULTIES
Cost- the total amount spent for goods or services including money,
time, and labor
Data- a collection of information about a study under investigation.
It may be a number (quantitative) or a word (qualitative)
Input- something that enters a process from the outside and is acted
upon or integrated in the main body of data.
Output - anything produced especially through a process, a
product, or a yield.
Production cost- the combined cost of raw materials and labor
incurred in producing goods.
COST OF PRODUCTION
Cost of production refers to the total
cost incurred by a business to produce
a specific quantity of a product or offer
a service.
Also, it relates to the different expenses
that a firm faces in producing goods
and services.
PRODUCTION COST
Production costs can include a variety
of expenses, such as labor, raw
materials, consumable manufacturing
supplies, and general overhead.
PRODUCTION COST
Production cost is important to the
supply side of the market. Sellers base
supply decisions on the cost of
production. In that production cost
generally increases as more of a good
is production, the supply price also
tends to rise with the quantity supplied.
Steps in recording and documenting
production input are as follows:
❖ First, weigh all materials and ingredients needed.
❖ 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.
❖ Third, follow the correct format in documenting and
recording.
Examples on how to compute the
Production Cost:
Example No. 1
Ginamos
Ingredients Quantity Unit Unit Cost
Anchovies 2 Kg ₱240.00
(Bolinao)
Table salt 2 Kg ₱ 30.00
With the given items above;

A. Compute the production cost of “Ginamos”.

B. After computing the production cost of “Ginamos”,

compute the selling price of the product if 20%is added to
the unit cost?
Solutions:
A. ₱240.00
+ 30.00 ₱270.00
= ₱270.00 + 54.00
₱324.00
B. ₱270.00
× .20
₱ 54.00
Examples on how to compute the
Production Cost:
Example No. 2
Sinigang na Tilapia
Ingredients Quantity Unit Unit Cost
Tilapia 1 Kg ₱120.00
tamarind 1 cups ₱ 10.00
Spinach 2 cups P 15.00
With the given items above;

A. Compute the production cost of “Sinigang na Tilapia”.

B. After computing the production cost of “Sinigang na

Tilapia”, compute the selling price of the product if 20%is
added to the unit cost?
Solutions:
A. ₱120.00
+ 10.00 ₱145.00
15.00 + 29.00
= ₱145.00 ₱174.00

B. ₱145.00
× .20
₱ 29.00
Examples on how to compute the Production
Cost:
Example No. 3
Ginataang Tulingan
Ingredients Quantity Unit Unit Cost
Tulingan 1 Kg ₱ 200.00
Coconut milk 3 cups ₱ 60.00
vinegar 1 cup ₱ 8.00
onion 2 pcs ₱ 10.00
garlic 3 cloves ₱ 5.00
Chili fingers 5 pcs ₱ 10.00
With the given items above;

A. Compute the production cost of “Ginataang Tulingan”.

B. After computing the production cost of “Ginataang

Tulingan”, compute the selling price of the product if
20%is added to the unit cost?
Solutions:

A. ₱ 200.00 B. ₱ 293.00
60.00
+ 8.00 × .20
10.00 ₱ 58.60
5.00 C. ₱293.00
10.00 + 58.60
₱ 293.00 ₱351.60
Remember this!
Keeping a record of the
expenses and income help the
seller track the business. It
will tell when she spent the
most and why; when she has
made a business and why;
and where she has to improve
in terms of the expenses and
sales.