Identify the steps for valuing an inventory item using the Standard Cost Costing method?
1. Rollup Standard Costs.
2. Enter Standard Cost at sublist level.
3. Revalue inventory and update Standard Costs.
Identify the steps for valuing an inventory item using the Standard Cost Costing method?
1. Rollup Standard Costs.
2. Enter Standard Cost at sublist level.
3. Revalue inventory and update Standard Costs.
Valuing an inventory item using the Standard Cost Costing method typically follows these steps: First, enter the Standard Cost at the sublist level to establish the expected cost for inventory items. Next, rollup Standard Costs to calculate the total cost of assemblies and sub-assemblies based on the entered data. Finally, revalue the inventory and update the Standard Costs to reflect any changes. This sequence ensures that all standard costs are correctly established, aggregated, and updated.
D. 2, 1, 3
Set up Standard Costs. For each cost version, enter the standard cost for inventory items in a planned standard cost record. This record stores the expected cost of inventory items. This expected standard cost is used to calculate variances from the item cost. Roll up Standard Costs to calculate the total cost of assemblies. The cost roll up calculates the total fixed cost of assembly and sub-assembly items based on data entered on the planned standard cost record. The planned standard cost record is sourced to find the cost of individual component items for assemblies. The cost of each member and sub-assembly is rolled up to calculate the total cost of the assembly. Revalue Inventory and update standard costs. Revaluing inventory updates the standard cost of items and identifies the effective cost date. Revaluation can be run using the following methods: As a bulk process using existing cost version records. Entering new costing data manually.