Question no 3939 : Assembly Scrap Factor and Component Scrap Factor (1)

In SAP ECC 6.0 Ehp7, use the following data to calculate the Cost of the Raw Material.

Finished Goods with Assembly Scrap Factor 20%
Raw Material with Component Scrap Factor 5%
BOM show 1 pc of Raw Material to product 1 pc of Finished Goods
Raw Material MAP is $10/pc

What is the Cost of the Raw Material ?

(only one answer)

A) $12.60
B) $12.00
C) $10.00
D) $13.60
E) $18.00

Answer: A

Explanations:
Assembly Scrap Factor 20%
Component Scrap Factor 5%
1+ (1 x 20%) = 1.20
1.20 + (1.20 x 5%) = 1.26
Raw Material Costs is 1.26 x $10 = $12.60