FIFO for one product or product class

We have one purchased raw material that has a very volatile cost. We currently use standard costing for our manufactured parts and average costing for our purchased parts. Is it possible to use FIFO for a product class (all of the parts that use this raw material)?

Costing method is defined on the individual part and not part class. For changing the costing method you will have to review your accounting policy and possibly change it.

Vinay Kamboj

How does the costing work for the manufactured part that uses this part?