Manufacturing Cost

Hi All,

I have question about Item Cost. I wonna know about how to calculate item cost in Manufacturing process. I have some manual. i need to functional advise please help me guys …also how calculate WIP.

regards Avernus

Depends on the costing method, but the basics are the same it comes from the BOM and the route.

Thank you reply,

So BOM and Route all of them have unit price then is that system automatic calculation them unit cost?

Sorry my language

It depends upon the costing method. But essentially yes, each item in the BOM will have a cost accumulating up, and each resource used in the routing has a cost and is accumulated and added together you get the cost or a cost and a variance.