You are the lead product design manager at a Process manufacturing plant.
A formula that produces egg yolks as a by-product. This by-product is added back into inventory at standard cost and can be used in other production batches.
You need to select the by-product cost allocation.
Which cost allocation type should you use?
In process manufacturing, when considering by-products like egg yolks that are added back into inventory at a standard cost, the most appropriate cost allocation type to use is 'Percent'. This method allows for the distribution of the cost based on the percentage of the main product, effectively accounting for the reutilization of the by-product in other production batches. This ensures that the costs are proportionally attributed, reflecting the actual usage and benefits derived from the by-product within various production processes.
there isn't a "recycled" cost allocation . should be "Per series" I think https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/methodology-total-cost-allocation