Ingredient consumption cost tobe apportined based on the actual production quantity in the batch
Hi Team,
We are a Poultry Company and our product is live bird. We are using OPM and our costing method is Actual PMAC.
The issue we are facing is we are not getting the correct product cost. The major ingredients are chicks and feed, chicks issue is at the earlier stage of the batch and feed consumption will continue till sale of product. One production batch life cycle is around 6 to 7 weeks. The birds will be in "WIP" till sale and at the time of sales only the production entry (batch certification) will be happened, ie.produced and immediately sold. The sale of birds are in 2 to 4 lots, i.e. one farm sales completion will take 2 to 4 days. So,