Thanks in advance for any help!
When I add up the last direct costs of the raw materials that make up my finished goods per the BOM, it is different to the last direct cost of my finished goods.
My thought process has always been that the last direct cost of raw materials will be updater per the invoicing of the last purchase price on the purchase order, that will roll up to update the last direct cost of the intermediate goods containing that raw material, and that will roll up to update the last direct cost of the finished goods containing that raw material.
Unfortunately that is not the case, this makes it difficult to accurately adjust my sales prices per the latest costs, as I like to have a certain margin.
I assumed this is how it would work, then I could update the standard costs per the standard cost worksheet and pull in the last direct costs to the standard costs, then post the revaluation journal to update the unit costs per the item lists. so for a moment all three (standard, unit, and last direct will be the same - until another raw material is purchased at a different cost)