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A company produces various products using Process manufacturing.

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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.

Change the cost of the primary formula item to zero and then recalculate the item cost.

B.

Change the production type to Bill of materials and recalculate the item cost.

C.

Associate the costs to produce by-products with the items.

D.

Change the primary formula item to use the planning item type.

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