Costing

Average Costing averages out the unit cost of an item that is received into stock. This is calculated as the average between the new cost of the item and the existing cost of the item held on file.

Receipts

• The Receipt cost is used to calculate the value of stock being received.

• If multiple bins are used, you can assign multiple bin locations to a stock code. A maximum of 50 locations can be entered for each transaction.

• A receipt results in a cost change for the stock item, except if a negative on hand existed before or after the receipt, in which case the receipt cost replaces the old cost.

• Positive receipt:

  • The unit cost of an item is recalculated each time you receive the item into stock.

  • The total cost of the item in the warehouse is added to the total cost of the quantity of the item received.

  • The new total cost of the inventory is divided by the new total quantity on hand.

• Negative receipt:

  • This decreases the quantity on hand and is normally used to reverse a previous receipt transaction.

  • If you are processing a negative receipt, you can enter only one bin location per transaction.

    New cost formula for receipts:

    ((Quantity on hand x Unit cost) + (Entered quantity x New cost)) / New Quantity on hand

    For example:

    Assume you have 100 items on hand with an average per unit cost of 10.00. Assume you received 50 items at 9.00 per unit. You use the receipt function to receive the new items into stock. The calculation and result would be as follows:

    ((100 x 10) + (50 x 90)) / 150 = 9.67 per unit

Adjustments

• An Adjustment is done when a batch of stock was receipted previously with the wrong quantity, which means that the quantity and price of that batch needs to be adjusted to correct the mistake.

• A positive adjustment increases the quantity of an item on hand, while a negative adjustment decreases the quantity of the item on hand. This function does not affect the unit cost of the item.

• New cost for adjustments:

  (((QOH - ENT) x Unit cost) + (ENT x New cost)) / QOH

  The quantity on hand (QOH) less the entered quantity (ENT) is multiplied by the current inventory unit cost (UNIT COST). This cost is added to the result of multiplying the entered quantity by the unit cost that the items should originally have been recorded at. You now have the correct total cost of the item in inventory. The last step is to divide the total cost by the quantity on hand to calculate the new unit cost of the item.

  For example:

  For example: assume that you have 100 items on hand with an average per unit cost of 10.00. Assume that in the past you received 50 items at 9.00 per unit when the actual cost was 8.00 per unit. You use the adjustment function to record the correction. The calculation and result would be as follows:

  (((100 -50) x 10) + (50 x 8)) / 100 = 9

Cost Changes

• The cost change function replaces the existing unit cost of the item with the new unit cost.

• You enter a new cost based on the unit cost or total cost of stock on hand.

• The system defaults the New cost field to the existing average cost.

• You have the option to update the last cost with the new cost entered.

• Calculation:

  • A journal entry is generated that reflects the difference between the old and new unit cost prices.

    Quantity on hand x (New cost - Average cost)

  • The new Average Cost entered replaces the existing average cost if you selected to change the Unit cost.

  • If you selected Cost basis - Total, then the system divides the new total cost with the quantity on hand to calculate the new Average unit cost.

Cost Modifications

• This function is used to adjust a specific quantity of items (e.g. to change the cost of a batch of items received into stock where the cost was incorrectly entered).

• The unit cost always changes when a cost modification is done.

• This function is not available when Average costing is used in combination with FIFO Valuation.

• The quantity entered may not exceed the available quantity on hand.

• Calculation:

  • A journal entry is generated that reflects the difference between the old and new unit cost prices for a specific quantity.

    Quantity on hand x (New cost - Existing average cost) = Difference

  • The new Average Cost is then calculated with the formula:

    ((Quantity on hand x unit cost ) + Difference) / Quantity on hand

    For example:

    Assume that you have 50 items on hand with an average per unit cost of 15.00. Assume that in the past you received 10 items at 10.00 per unit when the actual cost was 12.00 per unit. You use the cost modification function to record the correction. The calculation and result would be as follows:

    Difference: 10 x (12 - 10) = 20

    ((50 x 15) + 20) / 50 = 15.40

Backflushing

• You use the Backflushing function to record the receipt of a manufactured item into stock without using a Work in Progress job.

• The system explodes the item into the different parts and labor costs and generates issues for each part item and labor cost.

• The receipt of the manufactured item results in a cost change if the total issues and labor results in a unit cost that differs from the existing unit cost.

• Select the All option to process all levels in the bill of material. If the system encounters sufficient quantity of an item to proceed with the manufacturing, it reduces stock by the required amount according to the bill of material structure.

• Calculation:

  • Issues are generated for each part item, as well as labor costs. Each issue multiplies the quantity required for the job with the existing average cost.

  • The sum of all issues, including additional costs specified, becomes the new unit price of the completed item.

  • A receipt is generated for the completed item, which you entered in the Backflushing function.

    ((Quantity on hand x Unit cost) + (Entered quantity x Issue total)) / New Quantity on hand

    The existing average cost (Unit cost) is multiplied by the Quantity on hand. The entered quantity of the completed item to be receipted is multiplied with the sum of all the issues and expense costs (Issue total). The sum of the two calculations is then divided by the new quantity on hand to determine the new average cost.

Warehouse Transfers

• The warehouse that transfers stock out generates issues, similar to the expense issue function.

• The receiving warehouse receipts the items into stock at the value of the issue.

• If there is a difference in the unit cost between the received items and the existing average cost in the receiving warehouse, a cost change is done, as in the case of a normal receipt.

Bin Transfers

• This function is only available if multiple bins are implemented.

• Stock items are transferred from one bin to another and this does not affect the average cost.

Physical Count

• A physical count can result in a cost change if a difference between the quantity counted and quantity on hand is found.

• The new average cost is calculated in the same way as an adjustment.

Expense Issues

• You use the Expense Issues function to record the issue of items from inventory for miscellaneous purposes. The quantity entered is subtracted from the quantity on hand and costed at the current inventory cost.

• Expense issues do not result in a change in the average cost.

• The quantity entered is multiplied by the average cost.

Posting to a Previous Period

The average cost of an item is not recalculated when you post a transaction into a previous period. This could cause an imbalance between the sub-ledger module in which the transaction was posted and its corresponding control account(s) in the General Ledger.

When you use standard costing the unit cost of an item is not affected by a receipt. The only way you can change the standard cost of an item is by using the cost change function, updating inventory costs after a cost implosion, or using the Inventory Cost function of the Price/cost percentage change program.

Receipts

• The system does not display this prompt in the Inventory Movements receipt function if you are using standard costing.

• If you are retaining the last cost you have to enter the cost of the items received at their unit cost.

• Positive receipt:

  • You are not prompted for the cost of the item received unless you have set the Update last cost if standard costing is in use on (Options) in the Inventory Setup. In this case, the receipt is only used to update the last cost amount and has no effect on the standard cost.

  • If you are receipting stock against a job and flagging the job as complete, and the Automatically clear WIP variances valued less than is not zero (WIP Setup), variances less than the value (positive or negative) entered in the installation option is automatically cleared and the value is posted to the general ledger code defined in the Ledger code for automatically cleared variance field (WIP Setup).

  • If the variance is a positive value, the debit entry is posted to the ledger code for automatically cleared variances and the credit entry is posted to the WIP ledger control account entered against the job header. If the variance is a negative value, the debit entry is posted to the WIP ledger control account entered against the job header and the credit entry is posted to the ledger code for automatically cleared variances.

• Negative receipt

  • This decreases the quantity on hand and is normally used to reverse a previous receipt transaction.

Adjustments

• A positive adjustment increases the quantity of an item on hand, while a negative adjustment decreases the quantity of the item on hand. This function does not affect the unit cost of the item.

• Calculation:

  Adjustment Quantity x Standard Cost

Cost Changes

• You enter a new cost based on the unit cost or total cost of stock on hand. The system defaults the New cost field to the existing standard cost.

• You have the option to update the last cost with the new cost entered. A journal is generated that reflects the difference between the old and new unit cost prices.

• Calculation:

  • A journal entry is generated that reflects the difference between the old and new unit cost prices.

    Quantity on Hand x (New Cost - Standard Cost).

  • The new Standard Cost replaces the old unit price.

• If you are using standard costing with FIFO valuation, and you apply the change to a FIFO bucket only, then you are not changing your actual cost against the warehouse, but the cost against the individual FIFO bucket. As it would therefore be incorrect to change the standard cost at this point, because the standard cost applies to all quantities, the cost journal does not reflect the change. The FIFO journal does, however, reflect the change.

Cost Modifications

This function is not available.

Backflushing

• You use the Backflushing function to record the receipt of a manufactured item into stock without using a Work in Progress job.

• The system explodes the item into the different parts and labor costs and generates issues for each part item and labor cost.

• The receipt of the manufactured item can result in a cost variance.

• Calculation:

  • Issues are generated for each part item, as well as labor costs. Materials issued are valued at the standard cost of each item.

  • A receipt is generated for the completed item, which you entered in the Backflushing function. The value of the item is calculated at the standard cost for the manufactured item.

  • The sum of all issues, including additional costs specified, is compared to the standard cost of the manufactured item. If there is a difference in the price, a variance is posted to the WIP variance account.

Warehouse Transfers

• The warehouse that transfers stock out generates issues, similar to the expense issue function.

• The receiving warehouse receipts the items into stock at the value of the issue.

• If there is a difference in the unit cost between the received items and the standard cost in the receiving warehouse, a variance is generated and written to the Warehouse Variance Account of the receiving warehouse.

Bin Transfers

• This function is only available if multiple bins are implemented.

• Stock items are transferred from one bin to another and this does not affect the standard cost.

Physical Count

• This has no effect on the standard cost.

• Any difference between the counted stock and stock on hand is valued at the existing standard cost.

Expense Issues

• You use the Expense Issues function to record the issue of items from inventory for miscellaneous purposes. The quantity entered is subtracted from the quantity on hand and costed at the current inventory cost.

• Expense issues do not result in a change in the standard cost.

• The quantity entered is multiplied by the standard cost.

Last Cost costing means that whatever cost is entered in a transaction replaces the current unit cost. You value your total inventory according to the last cost that was entered for an item when it was received into stock. When you receive an item, the total quantity on hand, including the quantity received, is costed at the cost you entered.

Receipts

• A Receipt generates an automatic cost change if the Receipt cost entered differs from the existing Last Cost.

• The Receipt cost defaults to the existing last cost.

• Positive receipt:

  • Whenever Receipt cost is entered and it differs from the existing last cost for that stock item, the cost entered replaces the current unit cost and the total quantity on hand is costed at the cost entered at the Receipt cost prompt.

  • Inventory is valued at the last cost entered for a receipt of the item into stock. The total quantity of the item on hand is costed at this amount.

• Negative receipt:

  • This decreases the quantity on hand and is normally used to reverse a previous receipt transaction.

Adjustments

• A positive adjustment increases the quantity of an item on hand, while a negative adjustment decreases the quantity of the item on hand.

• Inventory is valued at the last cost on record at the time of the adjustment.

• Calculation:

  Adjustment Quantity x Last Cost

  Total quantity on hand x new cost entered = new inventory cost.

Cost Changes

• You enter a new cost based on the unit cost or total cost of stock on hand.

• The system defaults the New cost field with the existing last cost. You have the option to update the last cost with the new cost entered.

• A journal is generated that reflects the difference between the old and new unit cost prices.

• Calculation:

  • A journal entry is generated that reflects the difference between the old and new unit cost prices.

    Qty on Hand x (New Cost - Last Cost).

  • The new Last Cost replaces the previous unit cost.

Cost Modifications

• This function is used to adjust a specific quantity of items (e.g. to change the cost of a batch of items received into stock where the cost was incorrectly entered).

  No cost change is done. However, a cost change is generated in a receipt if the receipt cost differed from the existing unit cost (typically when a cost was incorrectly entered). A cost modification does not correct this cost change. A cost change transaction can correct this and should be considered if necessary.

• You would normally use this function when you want to adjust the cost of a specific number of items that were received into stock.

• This function is not available when Last cost is used in combination with FIFO Valuation.

  For example:

  You have 10 items on hand at 1.00 each. You receipt 10 items into stock at 1.10 each. The resulting cost change multiplies 20 items with the last cost entered, which is 1.10 per item, and gives you a new total cost of 22.00 and a unit cost of 1.10 per item.

Backflushing

• You use the Backflushing function to record the receipt of a manufactured item into stock without using a Work in Progress job.

• The system explodes the item into the different parts and labor costs and generate issues for each part item and labor cost.

• The receipt of the manufactured item can result in a cost change.

• Calculation:

  • Issues are generated for each part item, as well as labor costs. Each issue multiplies the quantity required for the job with the last cost entered.

  • The sum of all issues, including additional costs specified, becomes the new unit price of the completed item.

  • A receipt is generated for the completed item, which you entered in the Backflushing function. This results in a cost change if the new unit cost differs from the existing last cost of the item. The new quantity on hand is multiplied by the last cost entered for the manufactured item.

Warehouse Transfers

• The warehouse that transfers stock out generates issues, similar to the expense issue function.

• The receiving warehouse receipts the items into stock at the value of the issue.

• If there is a difference in the unit cost between the received items and the last cost in the receiving warehouse, a cost change is done, as in the case of a normal receipt.

Bin Transfers

• This function is disabled when Last cost costing is used, unless multiple bins are implemented.

• This function does not affect the unit cost of inventory items.

Physical Counts

• This function does not affect the unit cost of inventory items.

• The total cost of the inventory is recalculated since the quantity on hand changed. The result is written to the Physical Count G/L Integration file and not the Adjustment G/L Integration file that the Stock Take System uses.

• This function is not available when the Multiple bins setup option is enabled.

Expense Issues

• This function does not affect the unit cost of inventory items.

The FIFO (first in, first out) system is a method of keeping track of the value of stock. Each time a receipt into stock is made, that entry is stored in a separate bucket within the computer system.

• Each bucket holds the quantity entered and the cost at which it was received. In addition, the date of the last receipt and issue/sale is maintained, and can be enquired upon within the Inventory Query program or printed out using the Inventory Valuation report.

• When a sale or an issue is made, stock is taken from the oldest bucket located. If there is insufficient stock in that bucket, then stock is taken from the next available bucket and so on. SYSPRO does not have any concept of 'date' when creating a new bucket. The date of last receipt is not used when looking at a bucket for depletion; it is strictly based on the number of the bucket created, and the depletion is done in that sequence.

• When a valuation of stock is prepared, the stock in the oldest bucket is multiplied by the cost held within that bucket to give the bucket's value. The value of all buckets on hand is thus calculated and accumulated to give the total value for that warehouse's stock code.

• The Last cost field (when using FIFO costing) is equal to the cost of the last FIFO bucket.

• The Unit cost is equal to the average unit cost of the items.

Receipts

• Positive Receipt

  • A positive receipt into stock always creates a new bucket.

  • You have to enter a value in the Receipt cost field, because the system does not default to an existing cost.

  • The value of stock in the bucket is calculated by multiplying the quantity in the bucket with the unit cost of the bucket.

• Negative Receipt

  • This decreases the quantity on hand and is normally used to reverse a previous receipt transaction.

  • If you allow the system to select the bucket, then the stock is decreased from the oldest bucket first.

  • The system has no knowledge of the bucket(s) into which stock was originally received and therefore assumes the quantity is included in the oldest bucket.

  • You can select a specific bucket for the transaction.

Adjustments

• A positive adjustment increases the quantity of items on hand.

• You have the option of allowing the system to select the FIFO buckets to adjust, or selecting a single bucket yourself.

• If the system selects the bucket, the adjustment quantity entered is added to the last or latest bucket if it is a positive adjustment, or to the first or oldest bucket if it is a negative adjustment.

• The unit cost of that bucket is adjusted to equal the price entered and the total value of the bucket is recalculated.

Cost Changes

• You enter a new cost based on the unit cost or total cost of stock on hand.

• The system defaults the New cost field.

• You have the option to update the last cost with the new cost entered.

• You can select a specific bucket to change, or the system selects the first or oldest bucket.

Cost Modifications

• This function is not available when using FIFO costing.

Backflushing

• The part items that are used to create the manufactured item are all issued from the oldest or first bucket.

• The manufactured item is placed in a new bucket and the entered price becomes the unit price of that bucket.

Warehouse Transfers

• The system decreases the stock of the issuing warehouse from the oldest or first bucket upwards when a transfer is done, keeping a record of the number of buckets that were used.

• In the receiving warehouse the same number of buckets are then created with the received stock items and unit prices.

• When transferring stock from a non-FIFO costing warehouse into a FIFO costing warehouse and FIFO valuation is in use, the cost against the sending warehouse is used as the receipt cost.

Physical Counts

• This function works like an adjustment. You cannot select specific buckets to adjust.

• The system starts at the latest or last bucket and if the quantity entered exceeds the quantity on hand in the bucket, it overflows into the next bucket.

• Since the unit cost of each bucket may differ, the system calculates the value of the latest bucket with the unit price for that bucket, then calculates the new value for the bucket older than the latest bucket according to the second bucket's unit price and the adds the two totals together for the physical count value.

Expense Issues

• The quantity entered is issued from the oldest or first bucket and the value of the issue is equal to the unit price of that bucket.

• If the entered quantity exceeded the quantity on hand in the oldest bucket, SYSPRO uses the next bucket in line.

• Since the two buckets can have different unit costs, the value of each bucket's issue is calculated separately and then added together.

In the LIFO costing method, all stock receipts create a new LIFO bucket and all issues/sales are made from the latest bucket held on file. The latest bucket is decremented first when making a sale. If LIFO costing is installed, negative stock, multiple buckets and costing in another unit of measure other than stocking is not be permitted.

Each time a receipt into stock is made, the entry is stored in a separate bucket or bucket.

Each bucket holds the quantity entered and the cost at which it was received. In addition, the date of the last receipt and issue/sale is maintained, and can be viewed with the Inventory Query program, or printed on the Inventory Valuation report.

When a sale or an issue is made, stock is taken from the latest bucket located. If there was not enough stock in that bucket then stock is taken from the previous bucket going backwards.

When a valuation of stock is prepared, the stock in the oldest bucket is multiplied by the cost held within that bucket to give the bucket's value. The value of all buckets on hand is thus calculated and accumulated to give the total value for that warehouse stock code.

Receipts

• Positive receipt

  • A positive receipt into stock always creates a new bucket.

  • You have to enter a value in the Receipt cost field, because SYSPRO does not default to an existing cost.

• Negative receipt

  • This decreases the quantity on hand and is normally used to reverse a previous receipt transaction.

  • If you allow SYSPRO to select the bucket, then the stock is decreased from the latest bucket.

  • SYSPRO has no knowledge of the bucket(s) into which stock was originally received and therefore assumes the quantity is included in the latest bucket. You have the option to select a bucket for the transaction.

Adjustments

• A positive adjustment increases the quantity of items on hand.

• You have the option of allowing SYSPRO to select the LIFO buckets to adjust, or selecting a single bucket yourself.

• If SYSPRO selects the bucket, the adjustment quantity entered is added to the first or oldest bucket if it is a positive adjustment, or to the last or latest bucket if it is a negative adjustment.

• The unit cost of that bucket is adjusted to equal the price entered and the total value of the bucket is recalculated.

Cost Changes

• You enter a new cost based on the unit cost or total cost of stock on hand.

• SYSPRO defaults the New cost field.

• You have the option to update the last cost with the new cost entered.

• You can select a specific bucket to change, or SYSPRO selects the last or latest bucket.

Cost Modifications

• This function is used to adjust a specific quantity of items (e.g. to change the cost of a batch of items received into stock where the cost was incorrectly entered).

• You normally use this function when you want to adjust the cost of a specific number of items that were received into stock.

• You select a bucket that must be modified.

Backflushing

• The part items that are used to create the manufactured item are all issued from the latest or last bucket.

• The manufactured item is placed in a new bucket and the entered price becomes the unit price of that bucket.

Warehouse Transfers

• SYSPRO decreases the stock of the issuing warehouse from the latest or last bucket downwards when a transfer is done, keeping a record of the number of buckets that were used.

• In the receiving warehouse the same number of buckets are then created with the received stock items and unit prices.

Bin Transfers

• This function is disabled when LIFO costing is used.

Physical Counts

• This function works like an adjustment. You cannot select specific buckets to adjust.

• SYSPRO starts at the oldest or first bucket and if the quantity entered exceeds the quantity on hand in the bucket, it overflows into the next bucket.

• Since the unit cost of each bucket may differ, SYSPRO calculates the value of the oldest bucket with the unit price for that bucket, then calculates the new value for the bucket newer than the latest bucket according to the second bucket's unit price and the adds the two totals together for the physical count value.

Expense Issues

• The quantity entered is issued from the latest or last bucket and the value of the issue is equal to the unit price of that bucket.

• If the entered quantity exceeded the quantity on hand in the oldest bucket then the system uses the next bucket in line.

• Since the two buckets can have different unit costs, the value of each bucket's issue is calculated separately and then added together.

You have the following Bill of Material structure:

• MULTI-TOP

  • MULTI-FIRST (Qty Per = 1)

    • MULTI-SECOND (Qty per = 1)

      • MULTI-COMP (Component - Qty per = 1) The cost of MULTI-COMP component = 12.00

You create a job for 1 X MULTI-TOP and select to create sub jobs.

Generating the Job Variance report produces the following values:

You add an operation to the second level item (MULIT-SECOND) to the above Bill of Material structure:

You have the following Bill of Material structure:

• MULTI-TOP

  • MULTI-FIRST (Qty Per = 1)

    • MULTI-SECOND (Qty per = 1)

      • MULTI-COMP (Component - Qty per = 1) Cost of MULTI-COMP component = 12.00

        • MULTI-OP (Operation - quantity = 1) Cost of MULTI-OP operation = 57.00

You create a job for 1 X MULTI-TOP and select to create sub jobs.

Generating the Job Variance report produces the following values:

You add an operation to the first level item (MULTI-FIRST) to the above Bill of Material structure:

You have the following Bill of Material structure:

• MULTI-TOP

  • MULTI-FIRST (Qty Per = 1)

    • MULTI-OP1(Operation - QTY = 1) Cost of MULTI-OP1 operation = 114.00

  • MULTI-SECOND (Qty per = 1)

    • MULTI-COMP (Component - Qty per = 1) Cost of MULTI-COMP component = 12.00

    • MULTI-OP2 (Operation - QTY = 1) Cost of MULTI-OP2 operation = 57.00

You create a job for 1 X MULTI-TOP and select to create sub jobs.

Generating the Job Variance report produces the following values:

You add an bought out component to the first level item (MULTI-FIRST) to the above Bill of Material structure:

You have the following Bill of Material structure:

• MULTI-TOP

  • MULTI-FIRST (Qty Per = 1)

    • MULTI-OP1 (Operation - QTY = 1) Cost of MULTI-OP1 operation = 114.00

    • MULTI-COMP2 (Bought out Component - Qty = 1) Cost of MULTI-COMP2 component = 24.00

  • MULTI-SECOND (Qty per = 1)

    • MULTI-COMP (Component - Qty per = 1) Cost of MULTI-COMP component = 12.00

    • MULTI-OP2 (Operation - QTY = 1) Cost of MULTI-OP2 operation = 57.00

You create a job for 1 X MULTI-TOP and select to create sub jobs.

Generating the Job Variance report produces the following values:

You now issue the material and labor to the bottom level MULTI-SECOND.

Generating the Job Variance report produces the following values:

At this point the only actual cost is against the bottom level job so these are easy to see and monitor.

The variance is calculated as 138.00 / 207.00 * 100 = 66.67

Using the above example, you now receipted in half of the second level job. This equates to a material issue against the first level job, but in reality you have not issued any more value to the job structure.

The total value of the issue is half of the labor and material for the second level job = 69.00 / 2 = 34.50

Generating the Job Variance report produces the following values:

You now issue the component and labor against the first level job.

From the BOM Structure:

• MULTI-FIRST (Qty Per = 1)

  • MULTI-OP1 (Operation - QTY = 1) Cost of MULTI-OP1 operation = 114.00

  • MULTI-OP2 (Operation - QTY = 1) Cost of MULTI-OP2 operation = 24.00

Generating the Job Variance report produces the following values:

The values for the first level job (620) are:

• 114.00 for labor which is the actual cost of the operation against this job

• 58.50 for materials which is made of 24.00 (the bought out component for this job) plus 34.50 from the bottom job (621) which was issued before

The actual costs for the Master job totals are calculated as:

• Labor = 57.00 from the second level job plus 114.00 from the first level job = 171.00

• Material = 12.00 from the second level job plus 24.00 from the first level job = 36.00

Looking at the MASTER job totals you will notice that they are all in effect complete as you have now issued all the components and labor that the job structure requires.

From this point on it is merely a case of receipting in the sub jobs and issuing these quantities to the relevant master job (i.e. 0.5 against the second level job)

You now receipt in half of the first level job, which in effect is an issue to the master job itself.

Currently, the first level job consists of labor of 114.00 and material of 93.00. You issue half of this, so you issue 57.00 labor and 46.50 material = 103.50 to the master job.

Generating the Job Variance report produces the following values: