7

Quarter 2 – Module 4
Calculate Cost of Production and
Occupational Health and Safety
Weeks 7-8

Introductory Message
Introductory Message
For the facilitator:
Introductory Message
Introductory Message
For the facilitator:
This module was collaboratively designed, developed and evaluated by the Development and
Quality Assurance Teams of SDO TAPAT to assist you in helping the learners meet the
standards set by the K to 12 Curriculum while overcoming their personal, social, and
economic constraints in schooling.

As a facilitator, you are expected to orient the learners on how to use this module. You also
need to keep track of the learners' progress while allowing them to manage their own
learning. Furthermore, you are expected to encourage and assist the learners as they do the
tasks included in the module.

For the learner:

This module was designed to provide you with fun and meaningful opportunities for guided
and independent learning at your own pace and time. You will be enabled to process the
contents of the learning resource while being an active learner.
The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer Let’s try before moving on to the other activities included in
the module.
3. Read the instructions carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to
consult your teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain
deep understanding of the relevant competencies. You can do it!
 Let ’s Lear n

This module was designed and written with you in mind. This will help you hone your skills
in cooking. The scope of this module permits it to be used in many different learning
situations. The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the order in which
you read them can be changed to correspond with the textbook you are now using.

WEEK 7
Learning Outcome: Calculate Cost of Production
1. Discuss principle of costing
2. Compute cost of production

At the end of the module, you will be able to:

1. discuss principle of costing; and
2. compute cost of production.

WEEK 8

Learning Outcome: Importance of Occupational Health and Safety Procedures

1. Recognize the importance of OHSP

At the end of the module, you will be able to:

1. identify the different types of hazards/risks in the work place; and
2. discuss ways to control hazards and risk in the workplace.

WEEK 7

Let’s Try

Directions: Read and understand the statements. Write “True” if the statement is correct and
“False” if the statement is incorrect. Write your answer on the space provided before each
number.
1. Mark-up is the amount added to the product price to get the selling price.
2. Sales is the money earned from the sale of the product or service.
3. Be familiar with the prevailing prices of food similar to what you are about to sell.
4. Consider the customer’s desire and business goals in terms of product quality.
5. Disregard competitors of your business.
6. Short - term goals is better that long- term goals in business.
 7. Purchase price is the retail price or the amount you sell the goods to consumers.
8. Production cost includes materials, transportation, facilities, labor and packaging.
9. Pricing your products in a very low price has a positive impact on your business.
10. In putting up a business, know your own target market and needs.

Week Calculate cost of production

7

This module will reinforce your knowledge on how to calculate cost production.
Pricing a product is an important skill that anyone who wants to venture in business. Price
must be computed to reflect the value of the product you are offering as compared to your
competitors. You should consider carefully what your market can afford to pay your product
or services.
Read and understand the contents and instructions indicated in every pages of
this module. Perform all the activities and let your parent or guardian assist you if
necessary. Have fun while learning! 😊

At the end of the module, you will be able to:

1. discuss principle of costing; and
2. compute cost of production.

Let ’s Recall

Why is it important that you know the substitution of ingredients in cooking?

Share your ideas with your teacher and classmates.

Let ’s Explore

What business do you want to venture someday? Why? How will you start
your business? What are the different factors that you have to consider?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
 Let ’s Elaborat e

Common Factors that Influence Product Pricing

There are number of factors that influence food prices. These includes:
1. Local competition – prevailing prices of food similar to what you are about to sell.
2. Types of customer – your customers and what they value.
3. Location of business – good location may support higher prices than a poor one.
4. Desired profit – how much profit you would like to realize.

Creating a Competitive Product Pricing Strategy

Here are some factors to consider in pricing your product:

1. Knowing and understanding the market. This means that you will have to consider
carefully what your market can afford to pay and obtain your target financial share.
2. Analyzing the competition. It is important to study the competition around you.
Focus more on your service and quality advantages as well as the uniqueness of your
product.
3. Knowing your production costs. A basic principle of pricing is the ability to cover
your costs and then factor these in a profit. You can only know how to do this, if you
calculate how much was spent in producing the product.
4. Decide on your revenue target. How much would you like to target? After
determining this factor in your expenses in producing, marketing and selling your
product. It is the time you can derive a price that you want to charge per product.
5. Knowing where the market is headed. It is always good to have a futuristic attitude.
You can start by keeping track of outside factors that will affect the demand for your
product in the future.

Determining the Selling Price of Purchased Product

In determining the selling price of a product, here are the terms to familiarize
yourself.

1. Purchase Price – this is the cost price of the product you bought for selling.
2. Mark-up – this is the amount that is added to the purchase price to get the selling
price.
3. Selling price - this is the retail price or the amount you sell the goods to
consumers.
4. Sales – the money earned from the sale of a product or service
5. Free Items – items/ingredients used in a product that must be included in the
production cost like salt, pepper, condiments, sugar and sauces.

Computing for Cost plus Profit Price

Here are the steps for computing cost plus profit price.
1. Determine your production cost. It may include the following:
 Ingredients/Material
  Transportation
 Facilities
 Labor/Salaries
 Packaging
 Others

Total Production Cost: P_____________

2. Determine the number of items/products you produce. ____________

3. Compute for the item cost:
Total Production Costs ÷ Number of Items = per item cost
4. Determine your mark-up or how much is added to each item cost for profit (a
reasonable amount). It is usually expressed in percentage.
5. Add the per item cost, the profit and margin for each item. The result will be your
selling price.
6. Selling Price: P__________

Example: Chicken Afritada

Daily basis production:

1. Production Cost P 400.00

2. Number of Servings 10 servings
3. Item Cost
P 400.00 ÷10 = P40.00
4. Mark-up 30% = P 40.00 x .30 = P 12.00
5. Add item cost and Mark-up = P40.00 + P 12.00 = P 52.00
6. Selling Price: P 52.00 which could be rounded off to a lower or higher selling
price.
7. Selling Price: P52.00

Let ’s Dig In

Directions: Match the terms in Column A with their description in Column B. Write the
letter of the correct answer on the space provided before each number.
Column A Column B
1. Selling price a. 30%
2. Free items b. P20.00 each
3. Purchase price c. salt, pepper, sugar
4. Mark-up d. money earned from product or service
5. Sales e. retail price
f. business goals
 Let ’s Rem ember

The cost plus profit price is very simple and practical method of computing for the
selling price of your product. It includes factoring in all your expenses, determining the
number of items/products, computing for the item cost, determining mark-up expressed in
percentage, and adding the per item cost and profit margin for each item.

Let ’s Apply

Directions: Compute for the selling price of Buko Pandan dessert and show your
computation. Use a separate sheet of paper.
Given: Production Cost P 500.00
Item Produced 15 tubs
Mark-up 30%
Scoresheet:
Criteria Points
Showed a step by step computation 5
Derived the correct answer 5
Total Score 10

Let ’s Eval uat e

Directions: Determine the selling price of cupcake using the recipe and information below.
Show your computation. Use a separate paper if necessary.
Ingredients Costs (P)
Flour 50.00
Baking Powder 5.00
Salt 1.00
Butter 30.00
Sugar 30.00
Eggs 16.00
Vanilla 1.00
Condensed Milk 25.00
Total Cost: ______________

Other Expenses: Transportation: P 20.00

Labor :P 100.00
Miscellaneous: P 100.00

Yield: 20 cupcakes
Mark-up: 30%
Criteria Points
Correct Production Cost 5
Showed a step by step computation 5
Correct Selling Price 5
Total Score 15

Let ’s Ext end

To further enrich your learnings cost production, browse the link below.

Video Title: Food Costing and Pricing

https://www.youtube.com/watch?v=JajZTbcR5mA .

WEEK 8

Let ’s T ry

TRUE or FALSE
Directions: Read each statement. Write TRUE if the statement is correct and FALSE if the
statement is incorrect. Write your answer on the space provided before each number.
_____________1. Regular maintenance of electrical items by an authorized agency or
licensed electrician should be recorded and monitored.
_____________2. If your premises are likely to be unoccupied for a longer period e.g. over
Christmas and New Year, turn the water on at the stopcock and drain the system if possible.
_____________3. Prepare a flood plan for your business detailing the actions you will need
to take to minimize damage and disruption.
_____________4. When your premises are closed, lock away portable electronic equipment
e.g. laptop computers in a secure cabinet.
_____________5. Frequent visual inspections of all portable electrical items and fixed
electrical wiring.
_____________6. Making sure your premises are in a not so good state of repair, it will
minimize the chance of storm damage - check the building regularly (walls, roof and any
outbuildings) and ensure any problems you find and are repaired promptly.
_____________7. Keep as little cash on the premises as possible and let it out of public view.
_____________8. Ensure that cooking ranges, boilers and deep-fat fryers are fitted with
thermostats or emergency cut-off valves to turn off the fuel supply should a fire break out.
_____________9. Ensure pipes are properly installed using suitable insulation material.
_____________10. Let the cash register full of money overnight and leave the drawer open
as this often deters thieves.
Week Importance of Occupational
8 Health and Safety
Procedures
Apply health, safety and security procedures in the workplace. Safety regulations and
workplace safety and hazard control practices and procedures are clarified and explained
based on organization procedures. Hazards/risks in the workplace and their corresponding
indicators are identified to minimize or eliminate risk to co-workers, workplace and
environment in accordance with organization procedures. Contingency measures during
workplace accident, fire and other emergencies are recognized and established in accordance
with organization procedures.
After going through this module, you are expected to:
1. recognize the importance of OSHP; and
2. identify the differences of risks and hazards.

Let ’s Recall

Directions: Enumerate five (5) Common abbreviations used in kitchen measurement.

1._____________________
2._____________________
3._____________________
4._____________________
5._____________________

Let ’s Explore

Directions: Write down three (3) words that are related to the given OHSP terms inside the
circle. You may jot down your answers inside the circle provided below.

RISKS HAZARDS
 Let ’s Elaborat e

Practice Occupational Health and Safety Procedure

Running a business or a big food service establishment is a demanding job. Consider the
following responsibilities if you are a worker or the owner of such business.
• Protect your property from fire;
• Protect your property from natural hazards;
• Protect your property from crime;
• Protect your staff and visitors from accidents;
• Know the legislation that may affect your business.

https://gltnhs-tle.weebly.com/lesson-51.html

Most kitchen fires occur in kitchen ranges, boilers or deep-fat fryers and can often be traced
back to poor cleaning regimes.

A. Protecting Property from Fire

• Ensure that cooking ranges, boilers and deep-fat fryers are fitted with thermostats or
emergency cutoff valves to turn off the fuel supply should a fire break out.
• Ensure that filters are removed and de-greased frequently to prevent a build up of greasy
deposits.
• Cleaning should be done weekly, you may need to consider more frequent cleaning if the
equipment is used for long periods on a daily basis.
• Store all combustible materials away from buildings or perimeter fencing – preferably
inside locked waste bins or lidded skips. Ensure they are emptied regularly. If no suitable
outside location is available, use a secure internal storage area.
• Be vigilant when you open and close the premises each day – look for signs of potential
trouble e.g. graffiti or damage to fences – remove graffiti and repair any damage
immediately to deter further damage occurring.

Electrical faults

Prevention of faults is the answer here and this can be achieved by:
 Frequent visual inspections of all portable electrical items and fixed electrical wiring.
 Regular maintenance of these items by an authorized agency or licensed electrician
should be recorded and monitored.

Smoking

Ideally, smoking should be prohibited throughout the premises (including yards and
open areas) and notices to that effect prominently displayed.
• Ensure smoking is restricted to a designated area that is kept free of combustible items
such as paper, curtains, flammable liquids.
• Provide metal lidded bins for the disposal of ashtray contents and ensure they are
emptied safely every day. Do not dispose them with other combustible waste.
B. Protecting establishment from natural hazards Flood

Firstly, check with the local authority whether the property is in a flood risk area. If it is
then you should:
 Prepare a flood plan for your business detailing the actions you will need to take to
minimize damage and disruption.
 Conduct flood drill, so that you and your staff will be sure it works and have
experience of what to do.

Water Escape/Leakages

 Get dripping taps repaired as they can cause damages.

 Ensure pipes are properly installed using suitable insulation material.
 If your premises are likely to be unoccupied for a longer period e.g. over Christmas
and New Year, turn the water off at the stopcock and drain the system if possible.

Storm Damage

Making sure your premises are in a good state of repair, it will minimize the chance of
storm damage - check the building regularly (walls, roof and any outbuilding) and ensure any
problems you may find are repaired promptly.
Check at least once a year that roof gutters, down-pipes and drainage galleys are
cleared, unobstructed and kept free of leaves and vegetation.

C. Protecting property from crime

Burglary

Thieves frequently see catering businesses as an easy target and it is wise to ensure that
you have a good level of security.
Locks on external doors should be high standards and quality materials. All accessible
opening windows should be fitted with key-operated locks secluded windows and roof-lights
should be protected with steel bars, grilles or shutters. Consider fitting shop-fronts with
grilles or shutters to deter smash and grab raiders. Given time, almost any physical security
can be overcome, consider fitting an intruder.

Alarm system which will act as a deterrent and limit the time an intruder will have a
chance to enter your premises. Any alarm system should be fitted and maintained.
Closed Circuit Television (CCTV) can help deter and capture evidence of robbery. Any
system should be fitted and maintained by an installer registered with a nationally recognized
installation body such as - NSI (National Security Inspectorate) and SSAIB (Security
Systems and Alarms Inspection Board).
When your premises are closed, lock away portable electronic equipment e.g. laptop
computers in a secure cabinet. Consider fitting access control locks on entrance doors to
prevent intimidation or robbery.
Theft of money

Keeping cash on the premises overnight increases the chance of a break in:
• Keep as little cash on the premises as possible and keep it out of public view.
• Where possible, cash should not be left on the premises outside business hours.
• Empty the cash register overnight and leave the drawer open as this often deters thieves.

D. Protecting your staff and visitors from accidents. “Prevention is better (and
cheaper) than cure”.

Slips, Trips and Falls

The most common type of workplace accident can be easily and cheaply prevented in
most cases and often bring other benefits.

 Keeping the premises clean, tidy, congestion-free and well lit will go a long way
to preventing most types of accident.
 Clear up spillage promptly and post warning notices.
 Repair or replace damaged floor coverings immediately – especially on stairways
and areas where the public have access.
 Keep a clearly marked first-aid kit available at all times.

Electricity

Electricity can be harmful. Thus, the law insists that electrical installation must be safe.

• Ensure electrical equipment is only used for the purpose of which it is designed.
• Use a qualified electrician for electrical installation work and for regular testing of
portable electrical items to ensure that they are in good working order.

Fire safety

Carrying out a fire risk assessment is a legal requirement for all businesses (even one-
person operations), this helps prevent fires and ensures swift evacuation by employees and
the public in the event of a fire.

• Ensure that you have clearly labeled and unobstructed escape routes. In addition, the
awareness of your staffs’ evacuation procedure is a must. Arrange a scheduled simulation
to reinforce this practice.
• Ensure that you make a specific member of your staff responsible for customers’ and
visitors’ safety in the event of an emergency evacuation.

Manual handling/lifting

Preventing injuries caused by manual lifting of heavy items is also the subject of
regulations and solutions to this problem can easily be achieved.

• If loads must be manually lifted, ensure that they are carried by at least two people and
that training in lifting techniques is provided.
• Provide mechanical equipment, e.g. trolleys to assist staff in unloading and moving
deliveries. In addition, ensure deliveries are as close as possible to the location where they
will be stored or used.

Accident reporting and investigation

Make sure that all accidents and incidents are recorded and investigated as lessons can
be learned to prevent them in the future. Recording method such as the use of computer must
be accessible and secured.

F. Legislation that may affect business

We have mentioned some areas where legislations may affect your business. Fire
Safety, Food Hygiene and Electricity. There may be other regulations from other regulatory
board like Food and Drug Administration (FDA) particularly on manufacturing, packaging
and storing food. Therefore, you have to be aware and knowledgeable about the standards
and policies.

Let’s Dig In
Directions: Identify the type of hazard/accident in the workplace. Write the letter of the
correct answer on the space provided.
A. Protecting your property from fire;
B. Protecting your property from natural hazards;
C. Protecting your property from crime;
D. Protecting your staff and visitors from accidents;
E. Legislation that may affect your business.
_____1. Cooking ranges, boilers and deep-fat fryers without fitted thermostats or emergency
cut-off valves to turn off
_____2. Non-visual inspections of all portable electrical items and electrical wiring.
_____3. Prepare a flood plan for your business.
_____4. Consider putting shop-fronts with grilles or shutters to deter smash and grab raiders.
_____5. Keeping the premises clean, tidy, congestion-free and well lit will go a long way to
preventing most of this type of accident.
_____6. Do make aisles and passageways sufficiently wide for easy movement and keep
clear at all times.
_____7. Clear up spillage promptly and post warning notices.
_____8. Manufacturing and packaging standards should pass the regulatory board.
_____9. Only licensed electrical engineers should check and inspect electrical installations
and wirings.
_____10. A food establishment should be in a free-flood area.

Let ’s Rem ember

 What have you learned about the health and safety procedures in the workplace?
______________________________________________________________
______________________________________________________________
______________________________________________________________

Let ’s Apply

Directions: Draw various safety signs and tags inside the rectangle space given below. Color
each drawing. Your output will be evaluated using the scoresheet below.
Materials Needed: Pencil, Ball Pen, Eraser and Crayons

Let ’s Eval uat e

Let ’s Ext end

Directions: Make a slogan on storing of vegetable. Output will be evaluated using the
scoresheet below. Submit your output in messenger or google drive (link will be shared).
Scoresheet
Scoresheet
Criteria Points Score
Relevance to the topic 40
Originality 30
Creativity 15
Impact and Presentation 15
Total 100

Let ’s Eval uat e

TRUE or FALSE
Directions: Read and understand the statements. Write TRUE if the statement is correct and
FALSE if the statement is incorrect. Write your answer on the space provided before each
number.
__________1. Making sure your premises are in a not so good state of repair, it will
minimize the chance of storm damage - check the building regularly (walls, roof and any
outbuildings) and ensure any problems you find are repaired promptly.
__________2. Prepare a flood plan for your business detailing the actions you will need to
take to minimize damage and disruption.
__________3. Let the cash register full of money overnight and leave the drawer open as
this often deters thieves.
__________4. Keep as little cash on the premises as possible and let it out of public vie
__________5. When your premises are closed, lock away portable electronic equipment e.g.
laptop computers in a secure cabinet.
__________6. Frequent visual inspections of all portable electrical items and fixed electrical
wiring.
__________7. Regular maintenance of electrical items by an authorized agency or licensed
electrician should be recorded and monitored.
__________8. Ensure that cooking ranges, boilers and deep-fat fryers are fitted with
thermostats or emergency cut-off valves to turn off the fuel supply should a fire break out.
__________9. If your premises are likely to be unoccupied for a longer period e.g. over
Christmas and New Year, turn the water on at the stopcock and drain the system if possible.
__________10. Ensure pipes are properly installed using suitable insulation material.

Let’s Extend
To further enrich your learnings on occupational health and safety, browse the link
below.
Video Title: Gear Up for Food Safety
Video Link: https://youtu.be/vPZxb_kSzHM
 References

WEEK 7
PRINTED MATERIALS
 De Guzman, Ines A., “Cook It Right” A Module in Commercial Cookery-TLE,
Golden Cronica Publishing, Inc. Copyright 2015.

YOUTUBE RESOURCES
 https://www.youtube.com/watch?v=JajZTbcR5mA .

WEEK 8
PRINTED MATERIALS
Printed Resources
 K-12 Basic Education Curriculum Technology and Livelihood
Education

ONLINE RESOURCES
 https://gltnhs-tle.weebly.com/lesson-51.html

YOUTUBE RESOURCES
 https://www.youtube.com/watch?v=JajZTbcR5mA .
 https://youtu.be/vPZxb_kSzHM
 Development Team of the Module
Writer: MRS. FRENCH T. SAN PEDRO
MRS. RONA G. ANCHETA
Content Editor: MRS. MARIPAZ E. ALBES, Master Teacher I
Language Editor: MRS. ANGELUS B. SALESPARA
Reviewers: DR. ANGELA K. ALAMAN, Head Teacher IV
DR. RONALDO J. LASIN
Illustrator: MRS. JEN ANANO
Lay-out Artist: MRS. JEN ANANO

HYBRID TEAM VALIDATORS

JHS Team Leader/Facilitator: DR. MELEDA H. POLITA, SDS (Ret.)
School Head In-Charge: DR. REA M. CRUZ, Principal IV
Content Validator/Editor: MR. SANTIAGO T. ALVIS, Principal II

Management Team
DR. MARGARITO B. MATERUM, SDS
DR. GEORGE P. TIZON, SGOD Chief
DR. ELLERY G. QUINTIA, CID Chief

Name of EPS in-charge of Learning Area

MRS. VIRGINIA L. EBOŇA, EPS – TLE/EPP
DR DAISY L. MATAAC, EPS – LRMS/ALS
For inquiries, please write or call:

Schools Division of Taguig city and Pateros Upper Bicutan Taguig City

Telefax: 8384251

Email Address: sdo.tapat@deped.gov.ph