Cost Management - EBS (MOSC)

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By Product Cost Issue in Discrete Mfr

edited Nov 11, 2016 4:01AM in Cost Management - EBS (MOSC) 2 commentsAnswered

Hi Team,

I need costing behavior in the below scenario:

In discrete manufacturing, we have defined BOM for a FG item.

During interim operation from one of the raw material at the end of say stage 2 operation (i.e sequence 20) we get some aluminium granules as By-Product.

Business would like to know whether the cost roll up can be obtained for the granules for every job order....

Having quoted aluminium the parent material cost fluctuates. so upon operation completes the granules quantum has norms thru which can we get the cost roll up for the By-Product also?

For instance the parent aluminum cost is 230/kg and norms per product conversion is 0.383/kg so the cost should be rolled up to (230*0.383=88.2) and that will be cost of By-Product upon job order completion.

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