Republic of the Philippines

Department of Education
Region VIII

LEARNING ACTIVITY SHEETS

FOOD PROCESSING

Name of Learner : _____________________ Score : ______________

Grade Level and Section : _____________________ Date : ______________

LESSON 2 - CALCULATE THE PRODUCTION INPUTS AND OUTPUT

I. Learning Competency: Calculate the Production Inputs and Output

II. Objectives:
a. Determine the process that need to be undergone in costing product and
b. Compute production cost

III. Introduction
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 a good or service.
Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing
supplies, and general overhead.
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.

IV. Discussion
TECHNICAL TERMS

 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).
 Documentation- a systematic procedure of producing a record for reference.
 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.
 Production Report- a written record showing the input – output relationship in determining the yield from a certain procedure.
 Profit – gain
 Unit cost – the cost of product per piece

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.
Here is the formula in getting Percent Yield:
Output
% Yield = --------------------------------*100%
Input

Example on how to compute the Production Cost: Ginamos

Ingredients Quantity Unit Unit Cost
Anchovies (Bolinao) 2 Kg ₱240.00
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? 7
Solutions:
A. ₱240.00 + 30.00N = ₱270.00
B. ₱270.00 × .20 =₱ 54.00
₱270.00 + 54.00 ₱324.00

Since you already know the steps in recording and documenting production input. We will be learning also about
the sample of production report and sample of production cost.

Sample of Production Report

Product Name: Pickled / Marinated Milkfish Production

Date: May 26, 2020
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 8
Input: 1680 g
Output: Marinated Fish 1200 g
Wastage: 480 g
Percentage Yield: 71 %
Problem Encountered: NONE

Sample of Production Cost

Product: Pickled Mixed Vegetables
I – Raw Materials and Ingredients
Items Quantity wt/ml /gms Cost (₱)
Chayote 3 kls. 3 000 gms. 60.00
Carrots 6 pcs. 550 gms. 30.00
 red bell pepper 4 pcs. 80 gms. 5.00
Ginger 4 pcs. 270 gms. 10.00
Garlic 2 pcs. 100 gms 5.00
Onion 3 pcs. 165 gms 10.00
Sugar 1½ cups 275 gms 25.00
Vinegar 1½ cups 400 gms 10.00
Raisins 1 pack 100 gms 25.00
Salt 1 cup 150 gms 2.00
TOTAL ₱ 202.00

II. Packaging Materials

1. Preserving jars 8 pcs. x ₱ 5. 00 = ₱ 40. 00
2. Label 8 pcs. x ₱ 1. 00 = ₱ 8. 00= ₱ 48. 00

III. Overhead Expenditures

1. LPG / fuel for cooking / firewood₱
2. 00 2. Transportation ₱ 7. 00
3. Water ₱ 10. 00 = ₱ 19. 00
Grand Total = ₱ 269. 00

IV. Number of finished products - 8 jars

V. Net Weight - 250 gms

VI. Mark up price (20 % of Grand Total) - ₱ 53. 80

VII. Selling Price - ₱ 40.35

Keeping a record of the expenses and income help the seller keeps track of the business. It will tell when she has
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.

V. Exercises
A. Directions: Write T if the statement is correct and F if it is not. Write your answer in your activity notebook.
______ 1. Cost of production is a total expense incurred in processing the product.
______ 2. Unit cost is the cost of product per piece.
______ 3. One of the steps in learning how to determine the selling price of the processed product is making a list of the operating expenses.
______ 4. Keeping a record of the profit and income helps the seller keep track of the business.
______ 5. To ensure that the seller does not lose in the selling enterprise, the selling price of the food should be determined after computing all
the income incurred.
______ 6. All expenses incurred for the day like cost of ingredients, packaging materials, travel expenses and others should be recorded.
______ 7. A monthly inventory of the product sold is important.
______ 8. Profit means expenses.
______ 9. Cost means profit.
______ 10. Production cost is very important.
B. Computing the Production Cost
Direction: Prepare a Production Cost following the Given Format. Show your computations in your answer sheets.
Production Cost Product: Papaya Pickles
I – Raw Materials and Ingredients

Items Quantity wt/ml /gms Cost (₱)

Total:
II. Packaging Materials
1. Preserving jars ₱
2. Label ₱ _________
=₱
III. Overhead Expenditures
1. LPG / fuel for cooking ₱
2. Transportation ₱
3. Water ₱ __________
=₱
Grand Total = ₱ ________________
IV. Number of finished products - ______________
V. Net Weight - ______________
VI. Mark up price (20 % of Grand Total) - ₱ _____________
VII. Selling Price - ₱ ____________

VI. References:
TLR Education Series Food Processing K to 12 Curriculum Compliant by Agnes Annalie D. Sayon