2. CS-SU-067 RCT - WO DR 1500 (Inventory) CR 1600 (WIP) Qty x (Total GL Cost) 1,000 x 1.01889 = $1,018.89 RCT - WO DR 1500 (Inventory) CR 1600 (WIP) Qty x (Total GL Cost) 1,000 x 0.96 = $960 Scrap % = 0% Loss Costing (Scrap %) Scrap % = 10% Cost of Lost Component Stays in WIP Item cost inflated to include cost of items scrapped

3. CS-SU-063 Cost of Lost Items Stays in WIP RCT - WO DR 1500 (Inventory) CR 1600 (WIP) Qty x (Total GL Cost) 1,000 x 0.96 = $960 RCT - WO DR 1500 (Inventory) CR 1600 (WIP) Qty x (Total GL Cost) 1,000 x 1.3125 = $1,312.50 Yield % = 72% Yield % = 100% Loss Costing (Yield %) Difference = $352.50 = var Item cost inflated to include cost of items lost