inventory valuation-WIP report in manufacturing

johnson_alonso

Dear all,
I've got a problem to define the calculation of cost posted to G/L column of a particular item in inventory valuation - WIP report. I mean I don't understand how and why. I define the calculation formula as follws:
Cost posted to G/L = Consumption posted to G/L - Output qty posted to G/L + capacity cost / unit of produced item

The point I focused is why there is a relation between consumption and output, meanwhile they are located in different ledger entries ? and maybe different inventory unit of measure ? or if my calculation formula is wrong, then how is it in the report ?

:-k ](*,)

rgds,
Johnson Alonso,

"Past, present, future, is just an illussion"