Transform work order costing for average costs and Associated Accounting Distribution

Summary:

Customer Mawaridh (MHI) has one organization which manufactures various types of foods for animas, Birds etc, and they have a concern around the impact of transform work orders having perpetual average costing as the costing method.

Content (please ensure you mask any confidential information):

A Finished Goods item# FG-1 (Lot enabled) is completed and costed upon completion of a standard work order# WO-1 , the Item# FG-1 has been costed, and cost of this Item (for the same Lot/ valuation Structure) can be seen. Here all components/ raw materials issued, and all resource elements are charged during work order execution, and all are transacted and costed with no issue.