In production costing, I face a problem. Kindly tell me the best practice.
BOM - FG
Item - Item A - 1 No./FG
Item B - 1 No./FG
Inventory Model - Weighted Average Method for both BOM and Item
Production Order:
Picking List - Item A - 1 No. - CP-Rs.20/-
Item B - 1 No. - CP-Rs.40/-
Journal entry passed for Rs.60/-
Meanwhile the purchases of Item A and Item B made, hence CP changed.
Item A - CP-Rs.17.50
Item B - CP-Rs.37.50
RAF and Costing - FG is posted at the cost of Rs.55/-
According to me the the Costing of the FG should be based on the CP of Picking List, hence Rs.60/- Should I make any setting to achieve this? If so, Please let me know.
Thanks and Regards,
G. DILEEP RAJ.
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