When viewing the production cost for an assembly in Method Tracker it noticed that there are some manufactured parts that are coming in without any Material Costs associated with it, only Labor. The raw material components that these sub-assemblies are made of do carry costs (we are FIFO). I can’t tell that is rolls up these Material Costs anywhere.
Why would the Material Costs be 0 in some cases?
Thanks!
Paul
I think the material cost is at that level. So it’s getting the cost from the lower levels. Is the Assembly with 0s all assemblies in it? The screen shot looks like the level 1 (1 level down) is all assembly. So the material cost is on those levels, because below them is the materials.
Have you completed the total job Qty?
Waved found that receiving part of a job into stock, prior to the full day being produced, it goes in with zero cost
For example, a job to make 10 widgets with $5 of materials per widget is created. All material is issued up front. 5 are produced and received into stock. They go in with zero cost. The final 5 are produced and received into stock. They go in a $10 each (the total material cost of 10 x $5, divided by the day of this receipt of 5)
Since we use AVG cost method the cost is set to $5 each ((5 x $0 + 5 x $10) / 10)
