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Jul 30, 2020 at 11:53 AM

How to know only Raw Material Component cost in finish goods



I want to know, how can someone get the Raw Material cost for a product which has multiple production processes. When a product passes from many processes then activities cost of the process add on the raw material cost and it is using as a Raw Material cost for the further process but actually it has 2 component one is RM and another one is activity cost (OH).

So, I want a report which can show me a separate report for purely Raw Material cost with OH.

For example- Product X manufactures in 3 steps and 1st step takes $1,000 RM and $500 OH then 2nd step takes $200 RM and $600 OH and the last and 3rd step take $500 RM and $400 OH.

When we extract the 3rd step RM report from SAP it will show $2300+$500= $2800 while actual bought out RM consumption is $1200+$500=$1700.

So, I want the actual bought out RM consumption report from SAP.

Kindly help me.

Thanks and Regards

Satish Gupta, Cost Accountant