A company produces generic and name-brand paper plates in the same factory using standard costing and using the same Bill of materials and routes to produce both products. The finance and production teams want a way to view individual raw material consumption costs in the ledger. You need to add a production group to the finished good to control postings to the ledger. What should you do?
A. Create a production group for the finished good item.
B. Update the cost of the generic finished good item.
C. Create a production pool for the finished good item.
D. Create a new Bill of materials with alternate costs for the raw material.
Answer:C
A company produces generic and name-brand paper plates in the same factory using standard costing and using the same Bill of materials and routes to produce both products. The finance and production teams want a way to view individual raw material consumption costs in the ledger. You need to add a production group to the finished good to control postings to the ledger. What should you do?
A. Create a production group for the finished good item. B. Update the cost of the generic finished good item. C. Create a production pool for the finished good item. D. Create a new Bill of materials with alternate costs for the raw material.