Cost Accounting question

[ebarker]

I went and read the thread that you referred to.

I would have to agree with the comments made there that the cost is higher of the following:

a) the minimum unit cost
b) the material actually used.

so if you used a half a square foot of material, but the minimum buy is a foot, then the cost is for the foot.
if you used 3 square foot then that will be the cost because it is greater than the minimum buy of one foot

So I agree with your comments on pro-rating after thinking about it.

It would be good if they clarified the rules on pro-rating as I'm not sure that it is clear enough.

The one cool thing about metalsdepot is they have some fairly small sized materials, so that helps with the minimum buy.

Ed