Hello:

We manufacture products from a BOM where the number of components can range from 2 to 10 items that are used to create a final finished goods that we sell.

The raw goods components are moving average costed.
The finished goods are also moving average costed.

When I look at the Item Master, it has these cost fields:
(1) StdCostEa (Standard cost each)
(2) MostRecentCost
(3) QtyonHand1 (Current Quantity on hand)
(4) TotalCost1 (The current total moving average total cost)

What I noticed is that if I divide the TotalCost1 by the QtyOnHand1, the cost each is different than the Standard Cost and the Most Recent Cost. So...

For purchased components, is the Most Recent Cost what was paid the last time a new batch of purchased component was received?

Is Standard cost even used since we go by Moving Average?

For finished goods, each time we create a new batch of the goods using the BOM, does it average in the most current cost of all the BOM components, creating a new average cost for the finished goods?

Also, is there another table besides the Item Master that has the most current moving average costs?

Thanks,
Rich Locus, Marco Pharma, LLC