Finished product costing
Computing the cost of the finished product is a really challenging and difficult job. There are various costing methods used to compute the cost of components like Standard, Average, or Real Price. The cost of the finished product can be computed based on the cost of components used in the bill of material, labor, electricity, or any direct or indirect cost incurred during production.
Let's see how to compute the cost of the final product based on the cost of the components. If you would like to understand how different costing methods work, please go through the Product costing and Inventory Valuation recipe in Chapter 11, Advanced Warehouse Management.
Assuming that the costing method for all the components is set ...
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