Hi gurus,
I have a raw material which has two valuation types: DFD and DFI
I have maintained the alternative procurement for both the valuation types.
In mixing ratio, I have maintained 70% of DFD and 30% of DFI.
Now the moving average price of DFD is Rs. 55 and that of DFI is DFI is Rs. 11
The header moving avg price is 33
While running the product costing of the header material (of which this material is a component)
the value of this component is Rs 33.
But my understanding is the value of the product should be
70% of Rs55 + 30% of Rs 11 = 3.3+38.5 = Rs 41.8
So can you tell me why it is coming as Rs.33 instead of Rs.41.8? Or is it that my understanding is wrong?
Snigdho