Hi.
1> If you do BF at the time of GR 7 units, you are consuming the proportional RAW materials to this 7 units, so cost are charged to the order.
2> Yes. If you dont have routing no activitiy cost are charged.
3> OK.
So considering above my cases, even though, i do the GR for my production order at two different periods, the cost of WIP is zero. So no need of WIP calculation for my case. Am i right?
I dont think so, in theory this could happen but the reality is always different. Keep in mind the following:
+ Most of the time, the raw materials are changing its cost. So the provision of the GR (guess at standard cost) is not always equal to the sum of the cost of raw materils (mos of the time, valuated at variable cost)
+ The Standard Cost Calculation is not often run monthly. If you run monthly, the WIP according to your scenario could be little money, but still different to cero.
+ I dont know if you have multilevel production (Semi-Finised materilas) and also in this case I dont know if CO boy plan to work with Material Ledger for Multilevel costing.
Arturo.