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TLE-Cookery: Quarter 1 - Module 4 Calculation of Cost of Production
TLE-Cookery: Quarter 1 - Module 4 Calculation of Cost of Production
TLE-Cookery
Quarter 1 – Module 4
Calculation of
Cost of Production
TLE-Cookery – Grade 7 and 8
Alternative Delivery Mode
Quarter 1 – Module 4: Calculation of Cost of Production
First Edition, 2020
Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from their
respective copyright owners. The publisher and authors do not represent nor claim ownership
over them.
Management Team:
Schools Division Superintendent : Romeo M. Alip, PhD, CESO V
Asst. Schools Division Superintendent : Roland M. Fronda, EdD, CESE
Chief Education Supervisor, CID : Milagros M. Peñaflor, PhD
Education Program Supervisor, LRMDS : Edgar E. Garcia, MITE
Education Program Supervisor, AP/ADM : Romeo M. Layug
Education Program Supervisor, EPP/TLE : Evelyn V. Mendoza
District Supervisor, Abucay : Ruel D. Lingad, EdD
Division Lead Book Designer : Jovanni B. Belmonte
District LRMDS Coordinator, Samal : Charito D. Corpuz
School LRMDS Coordinator : Cathren Danica E. Ricaplaza
School Principal : Soledad V. Llarina
District Lead Layout Artist, TLE_CK : Jessalyn Anne M. Linsangan
District Lead Illustrator, TLE_CK : Joana Marie S. Pineda
District Lead Evaluator, TLE_CK : Cathren Danica E. Ricaplaza
Cookery
Quarter 1 – Module 4
Calculation of
Cost of Production
Introductory Message
For the facilitator:
This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace d time. Furthermore, this also aims
to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.
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For the learner:
The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
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Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are not
alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
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What I Need to Know
This module was designed and written to help you focus and learn skills in
calculating cost of production.
Directions: Compute the peso markup and get the percentage markup based on
selling price.
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Lesson
Calculation of
2 Cost of Production
Cost of production is important in any business. It is computed according to
standard procedure. Proper computation and calculation provides significant profit
when the selling price of products are met. They are reviewed and validated based
on enterprise production requirements.
What’s In
Directions: Arrange the jumbled letters to form words related to calculation of cost
of production. The meaning is provided for you to help you come up with the
correct word.
1. T C S O – price of an item
2. E M S I T – names of purchased things
3. U A K M P R – your profit per item
4. H U S A S P R E C T S O C – the price of an item that you buy
5. L L S I E G N I P E C R – cost or price of how much you sell the item
6. L E I D Y – the number of servings
7. F R P I T O – amount you earned between the purchase price and selling price
8. A Q I Y T N U T - number or amount of an item
9. Q L U A T Y I - kind or classification of an item
10. P O R I D U N T C O C S T O S - business costs involved in the
production of goods
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What’s New
Directions: Below shows sample cost production calculation specifically the peso
markup. Try to name the missing item/s. Choose your answer from the
box and write only the letter of the correct answer.
1. ITEM - POTATO
15.00 _______
5.00 _______
–– 80.00 _______
45.00 _______
250.00 ________
–– 175.00 ________
–– 350.00 ________
110.00 ________
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5. ITEM – LECHON KAWALI
395.00 _________
115.00 _________
What is It
The cost principle is an accounting principle that requires assets, liabilities, and
equity investments to be recorded on financial records at their original cost.
To determine food costs is to take the raw food cost of the item and divide it by the
desired food cost percentage to get the final price. First, you have to know the cost
of every ingredient in your recipe from the olive oil and salt to the meat.
The food cost analysis is the first step in creating a restaurant budget, and its value
cannot be understated. When created properly, a food cost analysis can act as an
ongoing tool to monitor your business costs so you can charge your guest
appropriately to ensure you hit your profit margins.
There are many possible situations that can cause food cost to rise. Some are
external factors, like the general cost of buying ingredients. Others may be internal,
such as waste in the restaurant kitchen or employee theft. Shrinking profits may be
a sign that your food cost is out of line.
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Why food costing is important:
Markup is the difference between how much an item costs you, and how much you
sell that item for--it's your profit per item. Any person working in business or retail
will find the skill of being able to calculate markup percentage very valuable.
Instructions
1. Calculate your peso markup. This is done by subtracting your buying price from
your selling price.
Example:
2. Decide whether you want to calculate your percentage markup based on cost or
selling price. Once you choose which you will be using to calculate, it is important
you stick to the method you choose throughout all your calculations, or you will
end up with faulty data. If you decide to calculate your percent markup based on
cost, go on to Step 3. If you decide to calculate your percent markup based on
selling price, go on to Step 4.
3. Calculate percent markup based on cost. This is done by dividing the peso markup
by the cost.
Example:
Peso markup 5.00
Purchase cost/buying price ÷10.00
Percentage mark up .5 or 50%
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4. Calculate your percent markup based on selling price. This is done by dividing the
peso markup by the selling price.
Example
Peso mark up 5.00
Selling price ÷15.00
Percentage mark up .33 or 33%
5. Make sure you consistently use either cost of the product or selling price to find
the percent markup on an item. Even though the cost, selling price, and peso
markup will always be the same, the percentage markup will be drastically
different depending on if you calculate it using selling price or cost. Using selling
price will give you a lower percentage markup (assuming you are making a profit),
while using cost will give you a higher percentage markup.
Purchase
Selling
Cost/ Percentage Markup
Price
Buying Cost Peso
Items
Markup
by Selling
(in PH peso) (in PH peso) by Cost
Price
Puto
25.00 35.00 10 40% 29%
Bumbong
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What’s More
Directions: Get the Peso Markup and calculate the Percentage Markup based on
the SELLING PRICE.
Percentage
Selling Price Purchase Cost Peso Markup
Markup
1. 24.00 18.00
2. 12.00 8.00
3. 35.00 25.00
4. 5.00 3.00
5. 24.00 18.00
6. 100.00 75.00
7. 315 250.00
8. 87.00 60.00
9. 180.00 90.00
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What I Have Learned
Directions: Given the following recipe and its estimated cost, compute for the total
purchase cost and impose a 50% mark up to determine the selling price
of your product.
Yield = 24 servings
Item Unit cost Total Cost Peso markup Selling Price per
serving
2 kg chicken 115.00/kilo _____
pepper ½ t/pack
Approx. 2 C/bottle
Approx. 32T
SP = _________
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What I Can Do
20.00 17.00 1.
12.00 9.00 2.
24.00 18.00 3.
7.00 5.00 4.
35.00 28.00 5.
89.00 60.00 6.
1050.00 850.00 7.
580.00 420.00 8.
3000.00 2500.00 9.
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Assessment
Directions: Compute the total purchase cost and give a 25% mark up to determine
the selling price of your product.
Yield = 12 servings
Selling
Items Unit Cost Total Cost Peso Mark
Price/Serving
2 kg ground
250.00/kilo
pork
90.00/kilo
2 pcs. of onion
12 pcs/kilo
45.00/kilo
1 head of
garlic
18 pcs./kilo
4 pcs. 140.00/kilo
medium
carrots 8 pcs./kilo
1.00/pack
1 tsp. pepper
½ tsp./pack
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Additional Activities
ACTIVITY 1
Direction: Write True if the value of each number is correct and False if it is not.
Selling Purchase
Peso Mark up % Mark Up Answer
Price Cost
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ACTIVITY 2
Mrs. Benitez prepared Bake Mac for her online selling. Given the following recipe and
its cost. Compute for the total purchase cost and twenty percent (20%) peso markup
and get the selling price per serving and yield 15 servings.
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What’s In: What I Know:
What’s New:
1. cost Peso Markup Percentage
1. B, A 2. items Mark up
3. markup
2. C, A 1. 2 40%
4. purchase
3. B, C cost 2. 3 43%
5. selling price
4. C, A 6. yield 3. 1 33%
7. profit
5. B, A 8. quantity 4. 10 40%
9. quality
6. B, C 10. production 5. 5 50%
costs
7. C, A 6. 7 28%
25% 6 5. 8. B, A 7. 30 60%
40% 2 4.
29% 10 3. 9. B, C 8. 5 11%
33% 4 2.
25% 6 1. 10. C, A 9. 30 25%
What’s More: 10. 100 33%
Answer Key
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Activity 1 What I Can Do:
Additional 1. 18%
Activities:
2. 33%
A. True
3. 33%
B. False
4. 40%
C. True
5. 25%
D. True
E. False 6. 48%
F. False 7. 24%
G. True 8. 38%
H. True 9. 20%
I. False 10. 16%
J. False
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References:
DepEd K to 12 Basic Education Curriculum 2 Technology and Livelihood Education
– Commercial Cooking, Department of Education
"You Know Food Costing Is Important BUT How Do You Impress That On Your
Kitchen Staff? | Reciprofity". Reciprofity, 2020. https://reciprofity.com/food-
costing-software-important-teach-kitchen-staff-importance-food-costing/.
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