What it costs to make something
Production costing, from real stock
A bakery, three months of batches, three products. Every figure below is from a real run in the demo business.
These are real figures from a demo business, not a mock-up of something that does not exist.
A recipe, costed from real stock
Family loaf — 300 loaves
Recipe · costed from today's warehouse prices
| Ingredient | Quantity | Cost |
|---|---|---|
| Flour | 6 bags | ₦444,000.00 |
| Sugar | 1 bag | ₦68,000.00 |
| Butter | 4 kg | ₦24,116.88 |
The recipe is priced from what the ingredients actually cost in the warehouse today, not a figure somebody typed in when they set it up.
A batch run
Production order PO-2026-00041
Family loaf · ordered 300 · made 296
Materials issued
₦536,116.88
Labour
₦22,000.00
Overhead
₦8,000.00
Total cost
₦566,116.88
The unit cost divides by what was made, not what was ordered. A short yield makes each one cost more — and that is the truth.
The line that matters
Cost history — Family loaf
Every batch, at what it actually cost
Latest cost
₦1,912.56
Sells for
₦1,200.00
Margin
−59.4%
| Batch | Cost each |
|---|---|
| Three months ago | ₦1,635.14 |
| Last month | ₦1,756.25 |
| This month | ₦1,912.56 |
Flour rose from ₦52,000 a bag to ₦74,000 over the same three months.
Most businesses find this out at their year end. This one found out on the day the batch finished.