Question no 3941 : Operation Scrap Factor and Assembly Scrap Factor

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

F100 Assembly Scrap Factor 20%
M100 Component Scrap Factor (BOM) 5% 
M100 Component Scrap Factor (Material) 10%
M100 Operation Scrap Factor 10%
M100 Price $20/pc

BOM shows to produce 1 pc of F100 requires 1 pc of M100

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: C

Explanations:
M100
with Operation Scrap Factor (Assembly Scrap factor will be ignore)

M100 Component Scrap Factor (BOM) 5% is Priority 1 will be used)
1+(1 x 10%) (Opr Scrap Factor) = = 1.10
1.10 + (1.10 x 5%) (Compo.Scrap from BOM) = = 1.155
M100 Cost 1.155 x $20 = $23.10