Hi all,
There is something I cannot quite understand here..
Why does output not use expected costs from the raw materials just like it does when an order is finished?
Instead it uses an expected cost from the unit cost on the item card. This is not accurate and does not make sense and would cause WIP value to be incorrect?
E.G I have 1 job for 5 units:
$1,500 of raw used
2 units have been output and 3 remain
now that should mean the 2 units should be posted at an exp. cost of $300 each with $900 still in WIP.
But if this item card has a unit cost of $400 it would post the costs using this value.Why does it use this value and not the raw material values? Is this a setup issue or by design because it does not make sense to me?
So in my example output would be showing as $800 with only $700 in WIP which is inaccurate.
Thanks.
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