JOb Costs

Epicor ERP 10
1

I have a question regarding Job Costing. We are using Lot Average for costing purposes.
If I start a job and then move parts ahead to the next operation (see below). How are the cost captured? I them ship the 250 pieces to the customer from stock.

OPR Completed QTY Total Operational Cost Final Cost
10 1000 1000.00
20 750 7500.00
30 500 5000.00
40 250 2500.00
Total Cost for the 250 pieces to inventory equals???
Then I complete the job several months later after the piece of equipment gets fixed. What is the cost going to inventory? What is the cost going into inventory?

OPR Completed QTY Total Operational Cost Final Cost
20 250 2500
30 500 5000
40 750 7500

I am trying to figure out if the cost fro the initial 250 absorbs the majority of the cost and then when we finish the rest of the job is teh cost lower then the average going into inventory. I would expect the job average cost to be correct.

2

This is a job for 1000 and you fully completed 250 and received them into inventory?

Costing in Epicor is pretty complicated so this will be an oversimplification but:

At the time of that receipt, Epicor will have been calculating a total actual cost for the job, (based on recorded labor, burden, issued materials, etc), along with a per piece cost, which is based on the current actual total cost of job / remaining expected production yield.

When you receive the 250 into inventory, the cost of those 250 will be the per piece cost from the job * 250 and will be used in the weighted average calculation to arrive at the new total cost of all inventory for that part/lot.

In the future, you will presumably accrue more costs on that job to finish production, at which time Epicor will have calculated a new actual cost for the job and a new per piece cost, etc.

3

So is the Cost in Operation 10 being obsorbed in the first 250 or what in my first example?

4

250 pieces worth of the actual cost at the time of receipt from Op10 will be used. The first pieces into inventory are usually front loaded and sometime the last piece if you had rework or had to wait on a component to come in before you can finish will have very little cost left on the job in wip to move.