Question: When you update a standard cost for an Item, it seems that the standard cost updates the item card’s standard cost and then makes a revaluation entry for all the quantity that the item card has for that item. It seems to me that for example: for goods produced in 2008 (quantity 10) at lets say 1,000 standard cost, and now the cost for that item produced in 2009 (Quantity 5) is 250, when you update the standard cost, you are now revaluing the 15 units at the new standard cost of 500. So in effect you are revaluing prior year inventory to the current standard cost?
You are correct, if you post the Re-valuation Journal. You don’t have to post the journal, thus leaving those old itmes at their original cost. You can just delete the lines that you do not want to revalue.