Hi all,

I have a question on Labor. We have a part that we manufactured some time ago. It was put into inventory. We later used the part and found it to have a bad component so we disassembled it and return the good components to inventory. The question is, how should we handle the original labor of that part. Should we remove the labor associated with the part and if so, how do you do that? Or do we leave the labor alone and just record the labor it took to disassemble it? How should this be handled?

Jasper Recto
Director of Information Technology
LOC Performance