Posted by: Pdfprep
Post Date: October 27, 2020
A company produces various products using Process manufacturing. The manufacturer makes two co-products from a formula and rarely produces the primary formula item.
The costs of making the co-products are inflated. The manufacturer must update the costs of producing the co-products and change the formula to not produce the primary formula item. You need to change the primary formula item type.
What should you do?
A . Associate the costs to produce by-products with the items
B . Change the primary formula item to use the planning item type
C . Change the cost of the primary formula item to zero and then recalculate the item cost
D . Change the production type to Bill of materials and recalculate the item cost
Answer: B
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