unit cost of finished item

lally

I am reading manufacturing manual . mean while I am getting some doubts .
Iwant to make a finished item ,..

I have only one bill of material . cost = 50.
I am using workcentre . Unit cost calculation is Time.
unit cost = 2.00 (Not direct unit cost )
Unit of measure code = Minutes
Capacity = 1
Efficiency = 100.
In Routing I had given set up time = 6 Minutes, Run time == 10 Minutes.


?Now let me know th e what is My Finished item cost?
I am not understanding how my cost is calculating ?


If I change the Capacity = 3 , Efficiency = 50 .
Then how my cost will effect. ?


Please let me know the solutions .

darshanm

Namaste!

In case of PROD. Order cost depends on
1. Unit cost of child items in BOM

2. Capacity utilization cost of routing.

3. In case of setup time system calculates the time per unit
i.e setup time/Lot size defined on item card.
4. When output is and consumption is posted, the cost of
raw material and capacity are aportioned on the FG item

AdamRoue

It also depends what your costing method is!

santoshmkcet

lally,

well there are two levels of costing,

single & multi level,

in single level cost is calculated based on bom

in multi level cost is calculated based on bom + routing

If you are not clear then ask in an elaborate way for me to explain.

santosh

lally

Thanks santosh ,

It’s good to meet u through this forum.

If u feel free could give a good example to understand easily with some transactions.

I am expecting a positive response .


Thanks and regards

santoshmkcet

Lally ,

Nice to meet u too in this forum.

And coming bak to the prob,

For eg. If item item A cost Rs 10 per kg

Item B consist of 10 kg of item A. ( Creat a BOM for item

Then goto item master, pick item B, goto Item tab - Manufacturing Calculate std cost. U will get Rs 100 as cost of Item B.

if item B is produced after consuming item A in machine C ( Creat routing for item B )

In machine C assign Rs 10 as unit cost.

Now Then goto item master, pick item B, goto Item tab - Manufacturing Calculate std cost. U will get Rs 110 as cost of Item B.

Now try entering the Indirect & Overhead rate seperatly for learning what changes happen to the item cost of item A & B.

Enough for now. :roll:

Bye.

Santosh :oops: