Cost Method for Finished product items when using STD costing in production process

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Posted on by AH-29041458-0

Please somebody clarify to me if its possible to use an average cost method in a finished product warehouse that get its inventory from a proceses that is controled using the STD costing method.

In ther words, can somebody give me the best practices to determine the costing method of Raw material warehouse, semifinished item warehouse and finished goods warehouse in an ERP enviroment where we want to use the STD costing method for all the production process?

There must be some world best practices for that!

Thanks in advance

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André Arnaud de Cal... 292,516 Super User 2025 Season 1 on at

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Cost Method for Finished product items when using STD costing in production process

I'm confused with this question. Can you clarify if:

1) The finished product needs to have an average costing method, where

2) The raw materials are controlled with a standard cost price?
Guy Terry 28,684 Super User 2025 Season 1 on at

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Cost Method for Finished product items when using STD costing in production process

I know it is possible to use an average cost method on a finished product, where that finished product is manufactured from raw materials which are standard costed.

I'm not able to tell you what is best practise, or why you might want to do that!