[Tiffany Collums]

First, can I ask what is your costing method and how do you capture labor on a standard production order?

You can create a production order manually to call out the parent as a child, but you cannot create a BOM like that or you will get low level code issues. If you are standard cost, the variances incurred by adding additional parts and labor should go to your variance accounts defined in your posting setups once the production order status is changed to Finished and Adjust Cost-Item Entries is run. If you are specific, then you will not see any of the variances and it will report the actual cost by each item produced. However, if you are using any other costing method, it will really skew your unit cost and the history by doing this.