Process Manufacturing - EBS (MOSC)

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issue of Item Costing

edited Dec 12, 2018 12:31AM in Process Manufacturing - EBS (MOSC) 29 commentsAnswered

Dear sir

i am working on a scenario in this

  1. We buy One RM as
    1. Import
    2. Domestic
  2. Import RM is used to manufacture FG which will get exported
  3. Domestic Material is used to manufacture FG to be sold in India
  4. As we have kept our Inventory Org Costing Method as Weighted Average, and the Rm item code is same for both Imported and Domestic Purchase item , the Inventory shows an average Cost for all items
  5. Our Export sales market is very competitive and if the RM cost is averaged out with Domestic price, the Sales to Production cost goes into loss.

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