Both the control accounts are set to standard costing.

I see what is happening now. It is taking the qty shipped and multiplying that by the avg unit cost - this is what is going into the ledger.

The avg unit cost is simply the total cost divided by the qty on hand.

So my question then is how does Adagio calculate the total cost, in particular for finished goods that aren't received, but built (using item assembly and adjustments)?

Thanks!