My company accounts for material costs for manufactured inventory through manual entry into an excel spreadsheet. The costs are taken from Production Detail Report and entered onto a monthly spreadsheet after the product ships. Often times the material usage varies, so a fixed cost is not accurate. The jobs are then closed.
Depending on your cost method, you could get the cost of each item shipped from the transaction that hits the Cost Of Sales GL acct.
Every time a material is used in production (issued to the job from stock, received to the job for Purch to Job PO line, etc…), the costs are added to the WIP GL account. A part transaction record will record the each item (the parts that go into the job) - the cost and the Job it went to.
If that job is then received to inventory, the costs of the parts are added up and used as the cost of the item that went in to inventory(this has some special cases that depend on your cost method used).
If the mfg’d item shipped to a customer from WIP, then the sum of the parts in WIP (for that job)go to COS.
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