### Recipe Costing explained

```Recipe Costing
Cooperative Grouping
Directions
Mr. O
Objective:
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Your team will assemble the necessary
materials needed to cost a recipe
Materials
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Recipe with yield information
Invoice price list
Cost worksheet
Cost the recipe ingredients and determine
the portion cost.
The Costing Problem
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A) The main problem with recipe costing is that we order by the pound,
but use ingredients by the cup or ounce.
“The solution to the problem is to work in the language of the “oz.” or
ounces, thereby providing a common “denominator” for costing.
B) The second problem is that we need to be able to interpret invoice
symbols.
“#” = pounds, when written after a number
“#” = number, when written before a number
“|” is used as a separator, it is not used to represent division.
6 | 5# flour (means 6 - 5 lbs packages of flour)
6 packages x 5 x 16 oz = 480 ozs.
C) Careful to use liquid measures for liquids and approximate weights
for dry ingredients. ( consider: a liquid cup vs. a dry cup)
Recipe Costing
“The Land of Oz.”
1.
Find the unit cost of the ingredient
from the invoice list.
Unit cost = cost of invoice order ÷ no. of total ounces
2. Find how many ounces of the ingredient are
used by the recipe.
Note: Change cups to ounces, pounds to ounces when necessary
3. Ingredient Cost = unit cost/ oz. x recipe ozs.
Cost of recipe
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Find ingredient unit cost
Find the ounce amount used for the recipe
Multiply unit cost x ounces
Do this for each ingredient
Add to find the total recipe cost
Find the recipe yield
Divide the cost of the recipe by the yield
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Work with your cooperative group expert to complete
cost worksheets for assigned recipes
Find total recipe cost
Find portion cost by dividing by yield
Each person must complete and hand in a cost
worksheet.
All work is to be shown.
Time is limited, work in a timely fashion.
Conversation is to be on task.
```