Most Essential Competency: LO 1: Produce quality macrame and basketry products

After reading the Information Sheet, the learner must be able to:

a. Identify the production process involved in macramé and basketry production

I b. Interpret the processes involved in production of macrame and basketry products

Production Process of Macrame and Basketry Products

Production is the process of creating goods and services that involves processing and
assembling a set of raw materials to be able to produce a set of products using simple tools,
machinery, and equipment.
Raw materials in making macramé products include abaca twine, plastic twine rattan (with
shoelace as our example; while basketry making uses abaca, pandan, buri and other materials
found in our locality (example was newspaper or art paper).

Production processes have four stages namely, operation, assembly, finishing and inspection.
1. Operation is the series of steps a raw material goes through to create a new product.
2. Assembly is putting up of all parts together to form a final product.
3. Finishing is the series of activities involved in the final polishing of product such as
varnishing trimming, cleaning etc.
4. Inspection is the process undertaken to make sure that the operation has been carried out
correctly as to the specified quality and quantity of the product.

The resources needed in the production of macrame and basketry products are as follows:
1. Material resources. The tangible, physical resources needed in creating a product that are
used for production. Examples are Abaca, Buri, Tikug and Pandan for raw materials and
macrame board, thread burner, scissors and tweezer among others are the tools used in
making the products.
2. Human resources. The most important among resources which includes people who plan
and create products. Human resources development can be achieved through education
and training.
3. Financial resources. Includes the funds for various purposes.
4. Informational resources. Correct and complete information is vital in the success of
producing a product. Facts are important in making plans, decision, and implementation. It is
identifying what, where when and how including the recent technological development of
producing products contributes to its success.

D
LEARNING TASK 1

DIRECTIONS: Supply the missing letters to form the correct word/s suited to the definition.

1. P_O_E_T P_O_O_A_ - a detailed description of series of activities aimed at solving a problem.

2. P_I_E - the value paced on goods and services offered to the public.
3. P_O_U_T_O_ - the process of creating products and services that a manufacturer sells to its
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 customer.
4. M_R_ U_ - the margin of difference between the cost price and selling price.
5. R_S_U_C_S- the material, manpower and machine used in creating products and services.
6. O_E_A_T_O_- involves series of steps a raw material goes through in the creation of a product.
7. A_S_M_L_- is putting all parts together to form a final product.
8. I_S_E_T_I_N - involves the process undertaken to make sure that the operation has been carried
out correctly.
9. R_W M_T_R_A_S -tangible physical resources needed in the creation of products, which are
used for production.
10.I_P_T– referred to as raw materials needed.

LEARNING TASK 2
A. DIRECTIONS: Match Column A with the correct answer in Column B. Write the letter of the
chosen answer on the space provided before each number.
A B
___1. tangible physical resources used for production A. finishing
___2. series of steps a raw material goes through the
creation of a product B. human resources
___3. putting up of all parts for final product C. production
___4. final polishing of a product D. operation
___5. includes funds for various purposes E. financial resources
___6. these include the people who plan and create products. F. assembly
___7. It involves the process to make sure the operation
has been correctly carried out G. informational resources
___8. The process of creating goods and services H. resources
___9. The correct and complete information of
producing products I. inspection
___10. The material, manpower and machine used in
creating products J. material resources
B. DIRECTIONS: Answer the following questions.
1. What are the processes involved in production? Explain each.
2. What do you think is the most important step in the production process? Elaborate your answer.

E LEARNING TASK 3

A. DIRECTIONS: List down at least five products that went through a production process found
in your home
B. DIRECTIONS: Make an illustration of a product found in your home that went through a
production process.
Name of Product:
Operation: (Materials) (Tools/Equipment)
Assembly:
Finishing:
Inspection:

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 A
LEARNING TASK 4
A. DIRECTIONS: Read the statements carefully. Choose the correct letter that best describes the
statement. Write your answer in your quiz notebook.

1. It is the process of creating products and services to satisfy human needs and wants.
A. Production C. Project proposal
B. Promotion D. Procedure
2. Production requires a set of inputs to be able to produce a set of outputs. Input means ____.
A. products produced C. buri, abaca and pandan
B. raw materials D. direct labor
3. It involves series of steps a raw material goes through in the creation of a product.
A. Operation C. Finishing
B. Assembly D. Inspection
4. It is putting all parts together to form a final product.
A. Operation C. Finishing
B. Assembly D. Inspection
5. It is a series of activities involved in the final polishing of a product such as varnishing, trimming,
cleaning.
A. Operation C. Finishing
B. Assembly D. Inspection
6. It involves the process undertaken to make sure that the operation has been carried out correctly
as to the specified quality and quantity of the product.
A. Operation C. Finishing
B. Assembly D. Inspection
7. These are the most important resources that include the people who plan and create products.
A. Material resources C. Financial resources
B. Human resources D. Informational resources
8. Correct and complete information is vital to the success of producing products.
A. Material resources C. Financial resources
B. Human resources D. Informational resources
9. These are tangible, physical resources needed in the creation of macrame and basketry products
which are used for production.
A. Material resources C. Financial resources
B. Human resources D. Informational resources
10.These involve funds for various purposes.
A. Material resources C. Financial resources
B. Human resources D. Informational resources

Most Essential Competency:

LO 1: Make a project proposal for making macrame and
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 basketry products

After reading the Information Sheet, the learner must be able to:
I a. Discuss the meaning and parts of a project proposal.
b. Construct a sample project proposal of macrame and basketry products.

Project Proposal for Macrame and Basketry Products

Project proposal or “the statement of work” is defined as the detailed description of series of
work aimed at solving certain problems, a prerequisite to achieve success in whatever project you
plan to do.
After choosing the project to be done, one must answer the following questions:
● Will I or other people appreciate the project?
● Is this project beneficial and economical?
● Are the materials to be used readily available?
● Can I follow the process in making the project?
Parts of a Project Proposal
1. Title - tells all about the title of the project, team and individual members’ names, date, and
the picture of the project.
2. Rationale- brief statement of the project and procedures employed to carry out the project,
and the project outcome.
3. Objectives- the goal or purpose of the project.
4. Design Drawing or Illustration - shows the design of the project.
5. Project organization and Management- tells how the project will be handled. It includes the
task phases from planning to production and division of responsibilities and duties of each
team member.
6. Budget – tells how much is to be spent for the whole project to finish.

SAMPLE PROJECT PROPOSAL

I. Title: Production of Marketable Macrame Bracelet

ll. Rationale:
Macrame is an art and craft of making decorative items using knots. So
simple that it only requires simple tools and materials yet produces a variety of products –
from jewelry up to home decorations to plant holders and wall hangers. This project gives
everyone an opportunity to discover a lot of things about macrame and can be a great
source of income that does not require many supplies or tools.

III. Objectives:
1. Make a macrame bracelet
2. Develop one’s love for work and industry
3. Apply one’s aesthetic sense in making a macrame bracelet
4. Show enthusiasm by working
5. Show creativity in promoting the product

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IV. Drawing Design:

https://www.google.com/url?sa=i&url=https%3A%2F%2F1.800.gay%3A443%2Fhttps%2Fwww.pinterest.com%2Fpin

V. Project Organization and Management:

The following phases were observed:
⮚ Phase 1 - Training product conduct and standardization of techniques
⮚ Phase 2 - Production of the product from assembly to finishing
Assembly - putting all parts together to form the final product
Finishing – done trimming and polishing of the product
Inspection – to check the specified product quantity and quality
Packaging – make sure the product is well packed and ready for
sale
⮚ Phase 3 – Promotion of the product (flyers distribution and exhibits)

Tasks Dates Activities Person in Charge

Training/Workshops January 2020 First Training/workshop
10th – 15th ● Registration
● Delegation of work to
each member
● Workshop
Production:
1. Assembly 18th-20th
2. Finishing 21st-23rd
3. Inspection 24th-25th
4. Packaging 26th
Promotion February 2020 Promotional Activities
1st-25th ● Distribution of flyers
● Exhibits
● Online streams

VI. Budget:
Item Description Total
1. Training/Workshop Training materials Php 500.00

2. Production

Assembly Tools and materials needed Php 1, 000.00

for production and
Finishing packaging
Inspection

Packaging

3. Promotion Php 500.00

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 Total Php 2, 000.00

D LEARNING TASK 1

DIRECTIONS: Write the correct positions of letters to form the word/s that fits the definition given.

1. TBEUDG - this tells the cost of the entire project.

2. LITTE - the name of the project, its organization and members
3. TCEJORP LASOPOPRP - the statement of work
4. NIOTARTULLSI - the design of the project
5. ARIOTANLE - a brief statement of the project
6. TCEJORP TNEMANGAME - this is how the project be handled
7. SNICEPNIOT – the checking of product’s quality and quantity
8. AYLBEMSS – the putting up of all part to form the final product
9. SEVITCEJOB – the goal or purpose of the project
10. LASOPORP TCEJORP – a series of work aimed at solving problems

LEARNING TASK 2
DIRECTIONS: Draw the shape consisting of the term needed for each phrase below. Put your
answer on the space provided before each item.

Project
Budget Design Organization
Rationale Title Drawing/ and
Illustration Management
Objectives

___1. the goal or purpose of the project

___2. tells all about the title of the project, team and individual members’ names, date, and
the picture of the project
___3. tells how the project will be handled
___4. shows the design of the project
___5. brief statement of the project and procedures employed to carry out the project, and
the project outcome
___6. tells how much is to be spent for the whole project to finish

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 E
LEARNING TASK 3

A. DIRECTIONS: Using the table below, supply the provided SAMPLE PROJECT PROPOSAL for
each of the following:
a. macrame plant hanger
b. macrame necklace
SAMPLE PROJECT PROPOSAL TEMPLATE

I. TITLE:

II. RATIONALE:

III. OBJECTIVES

IV. DESIGN DRAWING OR ILLUSTRATION

V. PROJECT ORGANIZATION AND MANAGEMENT

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 VI. BUDGET:

A
LEARNING TASK 4
A. DIRECTIONS: Read the statements carefully. Choose the correct letter that best describes the
statement. Write your answer in your quiz notebook.

1. It is a brief statement of the project.

A. Title C. Objectives
B. Rationale D. Design drawing
2. This is the design of the project.
A. Title C. Objectives
B. Rationale D. Design drawing
3. It is known as the statement of work.
A. Project proposal C. Promotion
B. Production process D. Projection
4. The goal or purpose of the project.
A. Title C. Objectives
B. Rationale D. Design drawing
5. It tells about the title of the project, team name, member names, date and picture of the project.
A. Title C. Objectives
B. Rationale D. Design drawing
6. The checking of product’s quality and quantity.
A. Assembly C. Inspection
B. Finishing D. Packaging
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7. This is how the project be handled.
A. Budget C. Rationale
B. Design drawing D. Promotion and management
8. The putting up of all part to form the final product.
A. Assembly C. Inspection
B. Finishing D. Packaging
9. It makes sure that the product is protected and ready for sale.
A. Assembly C. Inspection
B. Finishing D. Packaging
10. Tells how much is to be spent for the whole project to finish.
A. Budget C. Rationale
B. Design drawing D. Promotion and management

LO 2: Calculate the cost of production and selling price

Most Essential Competency:
of macrame and basketry products

After reading the Information Sheet, the learner must be able to:
a. Identify the product cost in macrame and basketry production
b. Compute for the cost and selling price

I Product Costing and Selling Price

Three parts of product cost:
1. Direct materials are raw materials that become part of the product (example: the milk and
sugar used to make pastillas; precious stones used in crafting jewelry like earrings
and necklaces).
2. Direct Labor consists of workers whose outputs are closely related to or directly related to
the manufacturing of the merchandise or product (example: the worker who prepares
and mixes the ingredients for the ice cream or cake).
3. Manufacturing Overhead are cost that are related in the production but do not become part
of the product. Examples of these are:
a. use of facilities, machineries, and equipment;
b. use of utilities (power, water and fuel used in running plantation).
c. salaries for employees or workers who are directly involved in making the product
d. transportation costs of raw materials; and

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 e. office supplies and expenses such as paper, telephone, photocopying used in the
operation of the offices.
Manufacturing Overhead is made up of the following:
1. Fixed Expenses – these are expenditure that continues even if no units are produce
(taxes, interest on debts and rental).
2. Variable Expenses – these are expenditure that varies with volume of units produced. It
is inconsistent and not fixed.

Computing for Product Cost and Selling Price

One of the most crucial aspects of marketing is price setting. Price is the value placed on
goods and services offered to the public.
Cost-oriented pricing is the basic method in setting the price of a product. In this method,all
costs are added and divided by the number of products produced in order to arrive at the selling
price of a single product or unit. Marku prefers to the margin of difference between the cost price
and the selling price.
Formula: Total Cost = Direct materials + Direct Labor + Manufacturing Overhead
Formula: Selling price per Unit = Total Cost ÷ No. of products produced

Example 1:
Direct materials Php 5,000.00
Direct labor 2,000.00
Manufacturing OH 3,000.00
Total Cost Php 10,000.00
÷ no. of products produced 500
Selling price per Unit Php 20.00
Example 2:
1. List down all the costs of materials that were used in making your product.
2. List down all the operational expenses like labor cost, transportation, electricity.
3. To find the total cost, add all the expenses in steps 1 and step 2.
4. To find the expected profit, multiply the sum in step 3 by .40 (If the desired profit is 40%).
5. To compute the selling price, add the product of step 4 to the sum of step 3.

Example: Plant Hanger Basket

Cost of Materials Php 1,000.00

Operational Cost:
Labor 100.00
Transportation 200.00
Total Cost 1,300.00
Profit desired x .40 (40%)
Expected Profit Php520.00

Expected Profit Php 520.00

Total Cost 1,300.00
Selling Price Php 1,820.00
D
LEARNING TASK 1
A. DIRECTIONS: Identify the three different parts of product cost. Write inside the box.
1.

2.
10 Product Cost

3.
 B. DIRECTIONS: Write DM if it is direct material, DL if it is direct labor, and MOH if it is
manufacturing Overhead on the space provided.
___4. transportation ___8. Security guard
___5. Abaca for basket ___9. salaries of workers
___6. Water expenses ___10. electricity
___7. Machine operator

LEARNING TASK 2
DIRECTIONS: Given the following table below, compute for the missing amount.
Dept. A Dept. B Dept. C Total

Dept. ABC

Direct materials 5,000 7,000 8,000 (10)

Direct labor 2,400 2,800 3,200 (11)

Manufacturing overhead (1) (2) (3) (12)

Dept. A (8 hours @ 300 per hour)

Dept. B (9 hours @ 300 per hour)

Dept. C (10 hours @ 300 per hour)

Total cost (4) (5) (6) (13)

No. of products produced 300 400 500 (14)

Product cost per unit (7) (8) (9) (15)

E
LEARNING TASK 3
A. DIRECTIONS. Given the following expenses, compute for the total cost ang determine the selling
price per unit. Yield = 150 pieces
Amount Total Cost Selling Price per unit

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Direct Materials
Cord (10 pcs. @ 50.00) 500.00
Beads (50 pcks. @ 25.00) 1,250.00 __________
Direct Labor
Worker A (8 hrs. @ 50.00) 400.00
Worker B (8 hrs. @ 50.00) 400.00 __________
Manufacturing Overhead
Office Supplies 200.00
Transportation 100.00 __________

Total __________ ___________

B. DIRECTIONS: Solve the given problem using the table below. (10 points)
Daisy wants to help her mother earn additional income during the pandemic crisis. So, she
decided to make a macrame plant hanger. The cost of material is Php 5,000.00, cost of labor is Php
250.00 and transportation cost is Php100.00. How much will be the selling price if the desired profit
is 50%?
Cost Sheet

Product: Macrame Plant Hanger

Particulars Amount

Cost Materials

Operational Cost:

Labor

Transportation

Total Cost

Profit desired

Expected Profit

Total Cost

Selling Price

A
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 LEARNING TASK 4
A. DIRECTIONS: Read the statements carefully. Choose the correct letter that best describes
the statement. Write your answer in your quiz notebook.

1. Which of the following refers to the raw materials that become part of the product.
A. Direct material C. Manufacturing overhead
B. Direct labor D. Production

2. It comprises the workers whose output are closely related to or directly related to the
manufacturing of the merchandise.
A. Direct material C. Manufacturing overhead
B. Direct labor D. Production

3. It includes all other costs incurred in the production but do not become part of the product.
A. Direct material C. Manufacturing overhead
B. Direct labor D. Production

4.The following are parts of the cost of a product EXCEPT.

A. Direct material C. Manufacturing overhead
B. Direct labor D. Production

5. It is the value placed on the goods and services offered to the public.
A. Promotion C. Place value
B. Price D. Cost-oriented pricing
6. Labor cost, transportation and electricity used in the production are examples of ___.
A. Cost of materials C. Total cost
B. Operational cost D. Cost-oriented pricing
7.The amount paid for the raw materials.
A. Operation expenses C. Office expenses
B. Price for food D. Cost of materials
8.The basic method in setting the price of your product is called ____.
A. Cost of materials C. Total cost
B. Operational cost D. Cost-oriented pricing
9. Which of the following statements are examples of manufacturing overhead?
I. facilities, machineries, and equipment
II. utilities like water, electricity, and fuel
III. raw materials
IV. transportation

A. I, II and IV B. I, II and III C. II, III and IV D. I, III and IV

10. Which of the following statements are parts of product cost?

I. Direct materials
II. Direct labor
III. Manufacturing overhead

A. I and II B. I and III C. II and III D. I, II and III

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 Reference: Rex Book Store, Inc. (RBSI)
HANDICRAFT: MACRAME AND BASKETRY TLE MACRAME AND
Laarni A. Urbiztondo (author), Leonora D. Basbas(coordinator) BASKETRY

tcp1/27/21

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