## Recipe Costing

### 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.

### 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)

### 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

 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