Food Distribution Program
Costing of Commodities

The following information will help you when you are figuring the cost of non-processed and processed commodity items.

Step 1:  Figure the cost per pound for shipping and warehouse.

You can figure it on a per month basic, per year, per quarter, etc.  We suggest that you use your agencies Straight Bill of Lading for October, as it is usually a good representation for the year.  Using  your figures from the Straight Bill of Lading, follow this formula.

For example,

This will give you cost per pound of all commodities for shipping and warehouse. 

Step 2: To figure the cost of non-processed foods.

Take the case weight of the item multiply by the cost per pound, this gives you the cost per case of the commodity.  For example: to figure what a 40# box of ground beef costs, take 40 lbs. x  .09 (cost per pound of commodities) equals $3.60 per case.

Step 3: To figure the cost of processed foods.

Most processing items are figured at cost per serving.   Salad dressing is figured at cost per gallon, or as noted in the total cost column.  See Figuring Cost of Processed Foods below.  If you can not print either of the two below, let us know and we will send you a copy. 

                      Figuring Cost of Processed Foods (excel spreadsheet)

                      Figuring Cost of Processed Foods pdf

To utilize the chart for figuring the cost of processed foods (above) simply fill in the amount you have figured for the cost per pound of the shipping and warehousing..  Then do the math across the page.  The weight per unit and the processing cost per unit are the same for all agencies across the state.   For example;

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