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I'm Teacher Angel
Computing Cost of
Production
OBJECTIVES:
At the end of the lesson, learners will be
able to:
a. identify the cost of production according
to standard procedure;
b. compute the total cost of production; and
c. appreciate the importance of computing
cost of production in daily life
through problem solving.
Activity 2: My Business Venture
Instruction: Answer this in your notebook. You only
have 5 minutes to finish this activity.
01 02 03 04
1. What food business do you want to venture
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someday?
Enter text here Enter text here Enter text here
2. You go to the supermarket to buy the ingredients.
List down the ingredients you will use.
3. Assess how much did you pay for the groceries.
Computing
Cost of
Production
The important fundamental Principles of Costing are as follows:
1. Cost is always related to its cause: It has been noticed that a cost is related as closely as possible to its
cause.
2. Abnormal costs are charged in costing: A cost incurred to meet the loss by fire, riot, theft or accident is
called an abnormal cost.
3. Cost is charged after it is incurred: If the cost has been incurred it is considered no cost and it cannot be
charged to a cost centre.
4. Past costs are not taken into consideration to future costs: It is generally the system that the cost of any
period should be met in that period itself.
5. Keeping of accounts for cost is also based on Double entry principle: The Cost Ledgers and other cost
control accounts are kept on the double-entry
principle.
How to
Calculate Mark-
up Percentage
Mark-up is the difference between how much
an item costs you, and how
much you sell that item for it's your profit per
item.
1. Calculate your peso mark-up. This is done
by subtracting your buying price from your
selling price.
2. 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 mark-up based on cost.
This is done by dividing the peso markup by
the cost.
4. Calculate your percent mark-up based on selling
price. This is done by dividing the peso mark-up by the
selling price.
[Link] sure you consistently use either cost of the
product or selling price to find the percent mark-up on
an item.
Cost of production refers to the total cost incurred by
a business to produce a specific quantity of a product
or offer a service.
Mark-up is the difference between how much an item
costs you, and how
much you sell that item for it's your profit per item
Activity 3
Mark me up
Direction: The Class will be divided in Group
of five (5).Read each item carefully and fill in
the blank(s) on the item cost and selling price
with the correct answer. Calculate percent
mark-up based on cost. This is done by
dividing the peso mark-up by the cost.
Activity 4
Solve My Mark
Up!
Instructions: Read and understand the given
scenarios. With your partner, and explain your
answer in a ½ crosswise.
Roselle baked some choco cookies. The recipe cost
of each is P6.00. She wants to gain P4.00 each. How
much would be the selling price of each cookie?
[Link] engaged himself in abuy and sell
business. He bought some banana muffin
and sold it for P20.00. He gained a profit of
P4.00 each muffin. How is the purchase
cost of Andrei’s product?
Direction: Complete the table below. Calculate your
percent mark-up based on selling price. Write your
answer in your quiz notebook.
B. Direction: Identify the following answer in box
provided.
Cost of Production Cost is charged after it is incurred
Abnormal costs are charged in costing Mark-up
Cost is always related to its cause
It refers to the total cost incurred by a business to
produce a specific quantity of a product or offer a service.
It is the difference between how much an item costs you,
and how
much you sell that item for it's your profit per item.
3. It has been noticed that a cost is related as closely as
possible to its cause.
4. A cost incurred to meet the loss by fire, riot, theft or
accident is called an abnormal cost.
5. If the cost has been incurred it is considered no cost
and it cannot be charged to a cost centre.
Assignment: In a ½ sheet of paper Given the scrambled letters below,
unscramble them to get a word or a group of words related to principles of
costing and the cost of production in cookery.
Write your answer opposite each item.
1. LACUCTORLA -
1. LACUCTORLA -
2. PUKRAM -
2. PUKRAM - 3. TIGNCOS _-
4. CHEASURP-
3. TIGNCOS _- 5. ESNGILL ICEPR-
4. CHEASURP- 6. OPES KRAMUP-
7. CNETREP –
5. ESNGILL ICEPR- 8. UCTIONPROD-
9. PORTIF-
6. OPES KRAMUP-
10. SERNGIVS
7. CNETREP –
8. UCTIONPROD-
9. PORTIF-
10. SERNGIVS
THANK YOU
