Recipe Costing

1. Recipe Costing Cooperative Grouping Directions Mr. O

2. Objective: • Your team will assemble the necessary materials needed to cost a recipe • Materials • Recipe with yield information • Invoice price list • Cost worksheet • Cost the recipe ingredients and determine the portion cost.

3. The Costing Problem • 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)

4. Recipe Costing“The Land of Oz.” • 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.

5. Cost of recipe • 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

6. Your Task • 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.