1. Grade 10 Term 3 Week 2-3 Lesson 2
Costing
Grade 10 Term 3 Week 2-3 Lesson 2

2. Costing ingredients or materials
Formula to calculate cost: Actual cost= Quantity used ×Purchase Price Quantity bought

3. Formula
Actual cost: the cost of materials or ingredients used to produce the product/item

4. Quantity used: is the actual amount of ingredients/materials used

5. Purchase price: is the price paid for quantity bought

6. Quantity bought: is the amount of ingredients/materials bought

8. When purchasing products, e.g. eggs, you cannot buy 4 eggs only
You will have to buy 6 or more and only use 4 as required by the recipe
Therefore, you will only charge for the number of eggs used in the recipe
You will use the formula
discussed previously to calculate
the actual cost

9. Example:
According to the recipe, there are 4 eggs and 60 g of margarine. It is calculated as follows: Eggs: (from recipe) ↓ Actual cost = 4 × R16.99 → (purchasing price) (quantity bought) → 12 = R6.00

10. (Quickly do this calculation in the activity book)
Margarine: 60 g used and 500 g bought at R16.99
Formula?
Calculations?
Actual cost?

12. When purchasing wool/sewing thread, you cannot purchase half the ball/reel
You will have to buy full ball/reel
Only half of the cost of the entire ball/reel needs to be included in the cost
The other half will be used for another item/garment
Then you will use the formula discussed
previously to calculate the actual cost

13. Example:
According to the pattern, ½ reel/ball needed for an item and quantity bought is 1 reel/ball at R11.00 Reel/ball: (from pattern) ↓ Actual cost = ½ × R11.00 → (purchasing price) (quantity bought) → 1 = R5.50

14. (Quickly do this calculation in the activity book)
Buttons: Quantity needed and bought is 6. The price is: R2.00 for 12 buttons
Formula?
Calculations?
Actual cost?