Fair market value for scrap

[geomapguy]

Originally Posted by Bob Steele

That's not exactly correct. In your Bill of Materials you need to include the cost of the metal you had to purchase in order to make the part. If it required a 4 foot X 2 foot piece of aluminum to cut out your part you must include the cost of the entire piece. You don't have to purchase it that way but you do have to find out what the smallest piece that you could purchase is that you could have cut your pieces out of and use that as a cost in the BOM. You can't just figure out the square feet of aluminum in your parts and multiply that by some square foot cost and put that in the BOM. The waste counts.

Yes this is correct

Example from manual

Example 6: A Team purchases a 4 by 4 ft sheet of aluminum, but only uses a piece 10 by 10 in. on their ROBOT. The Team identifies a source that sells aluminum sheet in 1 by 1 ft pieces. The Team may cost their part on the basis of a 1 by 1 ft piece, even though they cut the piece from a larger bulk purchase. They do not have to account for the entire 4 by 4 ft bulk purchase item.