Question no 3940 : Assembly Scrap Factor and Component Scrap Factor (2)

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

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

What is the Cost of the Raw Material ?

(only one answer)

A) $12.60
B) $22.00
C) $23.10
D) $13.60
E) $22.06

Answer: E

Explanations:
Assembly Scrap Factor 5%
Component Scrap Factor 10%
1+ (1 x 5%) = 1.05
1.05 + (1.05 x 5%) = 1.1025
Raw Material Costs is 1.1025 x $20 = $22.05
In SAP, there my be rounding to 3 decimals
so
1.05 + (1.05 x 5%) = 1.1025 >> 1.103
Raw Material Costs could be 1.103 x $20 = $22.06