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Former Member
Jan 31, 2012 at 05:32 AM

Huge price variance in Material Ledger

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Dear Gurus,

In our case the standard cost of one Finished goods is released with the price of Rs.10 but later on the cost of one of the Raw material is changed to Rs.1200. Without releasing the standard cost (as it cannot be released for more than once in a period) of the Finished Goods, we have performed Mock month end closing for Material Ledger.

Now due to the difference in raw material cost huge variance (Rs.12000-10) is lying as unallocated variance.

Please advise the way out as to how to correct the same at the earliest.

Regards

Rajya Lakshmi