MRP Costing and Budgeting Checklist
Unlock cost-effective MRP! This checklist ensures accurate material costing, optimized budgets, and peak efficiency in your production planning. Master your resources and maximize profitability with our expert-designed MRP Costing & Budgeting Checklist.
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Cost Element Definition
Verify all cost elements (e.g., raw materials, labor, overhead) are correctly defined within the MRP system.
Cost Element Code
Cost Element Description
Standard Cost
Estimated Cost
Notes/Justification
Cost Category
Currency
Bill of Materials (BOM) Costing
Confirm accurate costing for each component and sub-assembly listed in the BOM.
Raw Material Cost per Unit
Labor Hours per Unit
Machine Hours per Unit
Scrap Rate (%)
Yield Rate (%)
Notes on Costing Assumptions
Costing Method
Routing and Labor Standards
Validate that routing operations and associated labor standards are correctly linked to BOMs and costing calculations.
Standard Labor Hours per Unit
Standard Setup Time (Minutes)
Standard Machine Hours per Unit
Detailed Routing Description
Routing Status (Active/Inactive)
Routing Last Updated Date
Overhead Allocation
Review and confirm the accuracy of overhead allocation methods and rates applied to production costs.
Overhead Allocation Rate (%)
Description of Overhead Allocation Method
Base Hours/Units for Allocation
Cost Pools Included in Overhead
Last Overhead Rate Review Date
Rationale for Current Allocation Rate
Inventory Valuation
Ensure the system correctly values inventory using the chosen cost method (e.g., FIFO, Weighted Average).
Inventory Valuation Method (1=FIFO, 2=Weighted Average)
Initial Inventory Value
Cost of Goods Sold (COGS)
Ending Inventory Value
Inventory Valuation Date
Notes/Comments Regarding Inventory Valuation
Variance Analysis Setup
Check that variance analysis reports are configured to track and analyze cost discrepancies.
Material Usage Variance Threshold (%)
Labor Rate Variance Threshold (%)
Overall Production Variance Threshold (%)
Variance Report Frequency
Reporting Responsibility (Who receives variance reports?)
Next Variance Analysis Review Date
Budget Alignment
Verify alignment between MRP cost projections and overall production budgets.
Projected Material Costs (Total)
Budgeted Material Costs (Total)
Projected Labor Costs (Total)
Budgeted Labor Costs (Total)
Projected Overhead Costs (Total)
Budgeted Overhead Costs (Total)
Cost Variance Threshold (Percentage)
Budget Period End Date
Cost Roll-Up Verification
Confirm the accurate roll-up of costs from component level to finished goods level.
Component Level Cost (per unit)
Assembly Level Quantity
Calculated Sub-Assembly Cost
Direct Labor Cost per Assembly
Overhead Allocation per Assembly
Final Product Cost (System Calculated)
Final Product Cost (Manual Calculation)
Cost Discrepancy?
Purchase Price Variance Tracking
Ensure system is configured to track and report purchase price variances against budgeted costs.
Standard Purchase Price (per unit)
Actual Purchase Price (per unit)
Quantity Purchased
Variance Amount (Positive/Negative)
Variance Category (e.g., Material, Labor, Overhead)
Variance Explanation/Reason
Transaction Date
Supporting Documentation (e.g., Purchase Order, Invoice)
Period-End Costing Procedures
Validate procedures for period-end costing, including adjustments and reconciliations.
Costing Period End Date
Inventory Reconciliation Adjustment
Explanation of Significant Adjustments
Labor Variance Adjustment
Material Usage Variance Adjustment
Costing Method Used
Cost Accountant Signature
Material Requirements Planning (MRP) Screen Recording
Learn how to effectively manage your inventory and production with ChecklistGuro's Material Requirements Planning (MRP) functionality! This screen recording demonstrates how to use MRP to calculate material needs, plan production schedules, and ensure you always have the right materials on hand. Stop overstocking or facing stockouts - watch to see MRP in action! #MRP #MaterialRequirementsPlanning #InventoryManagement #ProductionPlanning #ChecklistGuro #BPM
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