LESSON 2:RECIPE

COSTING PROCESS
HOW IS A STANDARDIZED RECIPE
COST?
• Costing a standardized recipe is actually easy . It entails a combination of the skills which
have actually been mastered in the previous learning units . But because it may seem
confusing to the beginner , it is best to breakdown recipe costing into more manageable
steps.
• STEPS TO RECIPE COSTING
Step1.Plug in standardized recipe data .
-From the recipe card , transfer the recipe file number, recipe name , yield and portion size ,
ingredients(column 1),and ingredient quantity . Write all quantities in the EP column(column
3)first, since standardized recipes usually indicate cleaned , peeled and cut form and thus mean
EP weight . Indicate the date when the recipe was cost.
Step 2.Determine AP quantity .
-If an ingredient does not have any loss due to preparation,(e.g.oil or butter),then the EP
quantity is simply the same as the AP quantity . If not, the AP quantity(as purchased)quantity
must be calculated by adding back the processing loss . If difficulties are encountered here refer
back to Learning Unit 7:Yield Analysis. Write the result in the Quantity AP column(column 2).

Example:
Ingredient : Onions, chopped
Recipe Quantity:100g

Since peeling and chopping results to losses in weight ,the actual quantity
needed to be purchased for the recipe is actually higher. Say for example that
the standard yield for onion is 95%, the amount to be purchased would then be
105.26g(106g/0.95) and not 100g as indicated by the recipe. This results to a
higher actual recipe cost. If this is not done,the production losses would not be
accounted for in pricing later on and therefore this lowers the profit.
Step 3. Plug in Price List Data
-from the price list based on the most current market list, grocery list, purchased order and
price quotations, get the market price of the individual ingredients. Write these in the
Purchased Price Column(column 4).
Step 4.Compute Unit Price of Ingredients.
-this is done by converting the total purchased price to single unit prices. Be sure the unit
price has been converted to the same unit of measure as the ingredient quantity. Write the
results in the Cost Unit AP column(column 5). Round off answers to the nearest three(3)
decimal places.
Example:
Ingredient: Oil
Recipe Quantity: 45ml
Purchase Price: 154.75 per liter container
The unit price of oil can be calculated by dividing the purchase of 154.75 by
1000ml per liter.

Unit Price=P154.75
1000ml
=P0.155 per ml
Step 5. Compute for Extension Cost.
-to compute for the extension cost, multiply the As Purchased in column 2 with the unit price in
column 5. Write the results in the Extension Cost column(column6).
Step 6.Compute for Total Cost.
-to get the total cost, add all of the extension costs together(sum of column 6). When the result
across the Total Recipe Cost(row 8).
Step 7.Compute for Cost per Portion.
-divide the total cost of preparation(row 8)by the yield or number of portions to get the Unit Cost
or Cost per Portion/serving. Round it off to two(2)decimal places. The formula given is.

Unit Cost=Total Recipe Cost

Yield or No. of Portions
 Recipe Cost Worksheet
File Number:0012
Recipe Name:French Onion Soup
Yield:1.25L(5servings)
Cost Date: January 2,20XX

Ingredients Quantity( Quantity(E Purchase Price Cost Unit AP Extension Cost

AP) P)
Oil 10 ml 10 ml P154.75/L P0.155/ml P
1.55
Butter 30 g 30 g P42/250g P0.168/g 5.04

White Onions 421.05 g 400 g P57/kg P0.057/g 24.00

Dry white wine 150 ml 150 ml P95/L P0.095/ml 14.25

Beef Broth 1L 1L P321.50/10L P32.15/L 32.15

Salt and Pepper 20 g 20 g P12.5/100g P0.125/g 2.50

Croutons 125 g 125 g P23.55/250g P0.094/g 11.75

Parmesan Cheese 100 g 100 g P173.50/225g P0.771/g 77.10

Total Recipe Cost: P 168.34
Cost Per Unit Portion: P33.67
 STEP1. PLUG IN RECIPE DATA
Standardized Recipe Data
Recipe File Number:0012
Recipe Name: French Onion Soup
Product Classification: Bouillon Soup
Date Revised: January 1,2000
Recipe Yield: 1.25 liters
Portion Size: 5 servings(250ml each)
Cooking Time:40 minutes
Cooking Temperature: Simmering

Ingredients Quantity Methods

Oil 10 ml Heat in pan
Butter 30 g Add and melt
White Onions,Peeled,And 400 g Add & cook until golden brown
Slice thinly
Dry white wine 150 ml Add and reduce
Beef broth(prepared) 1L Fill & simmer for 30 minutes
Salt And Pepper 20 g Season
Croutons 125 g Float on onion soup in cup
Parmesan Cheese 100 g Grate and float on onion soup in cup and
place in salamander or oven and brown
slightly.
 STEP3.PLUG IN
STEP2. DETERMINE
PRICE LIST DATA
AP QUANTITY
PRICE LIST
Onion:(yield 95%) Date Prepared: January 2, 20XX
AP=400g
0.95 INGREDIENTS UNIT PRICE
=421.05g Vegetable oil 1L Container P
For all other ingredients 154.75
AP Quantity=EP Quantity
Butter 250 g blovk 42.00
STEP4. COMPUTE UNIT PRICE Parmesan 225 g 173.50
OF INGREDIENTS
Croutons 250 g pack 23.55
Salt and Pepper 100 g 12.50
Oil:154.75/1000ml=0.155/ml Dry white wine 1 L pack 95.00
Butter : 42/250 g=0.168/g
Onions: 57/1000g=0.057/g Prepared stocks 10 L 321.50
Wine: 95/1000ml=0.095/ml White onions 1kg 57.00
Broth: 321.50/10L=32.15/L Garlic 1 kg 250.00
S&P: 12.50/100g=0.125/g
Croutons: 23.55/250g=0.094/g Carrots 1 kg 80.00
Parmesan: 173.50/225g=0.771/g Cabbage 1 kg 66.50
Beef sirloin 1 kg 235.00
STEP5. COMPUTE
EXTENSION COST STEP6.COMPUTE TOTAL
RECIPE COST
Extension Cost=AP Qty. x Cost Oil: 1.55
Unit AP Butter: 5.04
Oil: 10x0.155=P 1.55 Onions: 24.00
Butter: 30 x 0.168=P 5.04 Wine: 14.25
Onions: 421.05 x 0.057=P 24.00 Broth: 32.15
Wine: 150 x 0.095=P 14.26 S&P: 2.50
Broth: 1 x 32.15=P 32.15 Croutons:11.75
S&P: 20 x 0.125=P 2.50 Parmesan:77.10
Croutons: 125 x 0.094=P 11.75 STEP7.COMPUTE COST PER
Total recipe cost P 168.34
Parmesan: 100 x 0.0771=P 77.10 PORTION OR UNIT COST

Unit Cost=Total Recipe Cost

No. serving portions
Unit Cost=P 168.34
5 portions

=P 33.67