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Former Member

Scraping In-house Production Material

How can I explain why the scrap cost of a in-house produced part has to be posted against the Cost Center with the full standard cost (Material Cost + PTIME), and not only the material cost?, My Manager says if we scrap Material with MvT 551, to the Production Cost Center, then the Cost Center has posted twice the Direct Labor Cost and Overheads because these cost are included already in the standard cost of the part.

I tried to explain already, but it didn't worked!

Please help!!

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