Table 1.

Table of Direct Materials

Products INGREDIENTS QUANTITY UNIT PRICE PRICE

Chicken Bonk Chicken 500gm/0.5kg P170.00 per P85.00
kg
All-Purpose Flour 50 cups P1.00 per P50.00
piece
Pepper 100 P0.50 per P50.00
spoon
Fish Sauce

Calamansi

Curry Powder

Flavorings (Honey,
Garlic, Spicy)
Total
Mojoster Potatoes 250 grams P80.00 P80.00
P7.00 per
Eggs 12 pcs. piece P84.00
P 20 per
Crispy Fry 1 pack pack P20.00
Total
Lemonster Lemon ½ kg P30.00 P30.00

Sugar

Water
Total
TOTAL DIRECT MATERIAL P2,225.00

Table 2. Table of Direct Labor

DIRECT LABOR
HOURS PRICE PER NO. OF WORKERS PRICE
HOUR
8 P2.00 4 P 64
8 P 3.00 3 P 72
8 P 5.00 1 P 8
TOTAL DIRECT LABOR P 144

Table 3. Table of Overhead

OVERHEAD
QUANTITY UNIT PRICE PRICE
Labelling 200 units P0.1 P20.00
 TOTAL OVERHEAD P20.00

Table 4. Table of Period cost

Period Cost
QUANTITY UNIT PRICE PRICE
Electricity 8 hrs P12/ kwh P20.00
Water
TOTAL OVERHEAD P20.00

Total cost per product

Total direct materials + Total direct labor + Total overhead/Units Produced: P2,225 + P128 + 20 = P2,373

Chicken Bonk = P2,225/200 =

Mojoster = P200

Lemonster

TOTAL: P11.87

Price per product with 60% markup

Ice cream in cup with sprinkle toppings: P15.57*0.60= P24.912

Ice cream in cup with marshmallow toppings: P14.87*0.60= P23.792

Ice cream in cone P16.87*0.60 = P26.992

Notes:

MARK UP COST

 MARK UP COST SHOULD BE BASE ON YOUR BEST ESTIMATES THAT IS DEFENDABLE

 ALWAYS TAKE CONSIDER OF COMPETITIVE PRICING; MAKE SURE THAT THE AMOUNT IS NOT
TOO HIGH NOR TOO LOW AS COMPARED TO YOUR POTENTIAL COMPETITORS
 COST BENEFIT; MEANING THAT THE BENEFIT/SATISFACTION THAT YOUR CUSTOMER WILL
RECEIVE UPON PURCHASE MUST EXCEED OR BE EQUAL TO THE PRICE OF THE PRODUCT THEY
PURCHASED

COST OF PRODUCT

 DIRECT MAT + DIRECT LABOR + OVERHEAD + PERIOD COST = PARTIAL COST

 PARTIAL COST * MARK UP PERCENTAGE = TOTAL COST
 TOTAL COST / UNITS PRODUCED = PRICE PER UNIT
COST

REGARDING THE COST ALLOCATION OF YOUR PRODUCT, THE COST THAT YOU WOULD APPLY
MUST ALWAYS BE BASE ON “BEST ESTIMATE” AND JUSTIFIABLE, MEANING IT IS SUPPORTED BY
EVIDENCE SUCH AS PRICE DURING CANVAS OF GOODS, ETC.