Foundry & Forging calculator

Foundry Scrap Cost Calculator

Reconcile the expense of a rejected foundry lot. Use recorded part value, net recovery credit, the documented job share and separate containment charges.

What this calculator does

  • Price rejected castings after documented metal recovery credit and the assigned share of the loss.

Formula used

  • Gross rejected value = rejected parts × book cost per part
  • Recovery credit = rejected parts × recovery credit per part
  • Allocated loss = (gross rejected value − recovery credit) × allocation ÷ 100
  • Scrap expense = allocated loss + containment and disposal
  • Expense per rejected part = scrap expense ÷ rejected parts

Inputs explained

  • Rejected Castings or Forgings: Rejected count from the disposition record.
  • Book Cost per Rejected Part: Recorded cost accumulated through the rejection point.
  • Recovery Credit per Part: Documented net metal recovery value for each rejected part.
  • Scrap Cost Allocation: Documented job share of loss after recovery credit.
  • Separate Containment and Disposal: Additional charges excluded from the recorded unit cost.

How to use the result

  • Best suited to rejected lot Reconciliation, job loss allocation.
  • Replacement production and lost sales are excluded. This is a job cost reconciliation, not an inventory valuation policy.

Current U.S. benchmarks

  • The producer price index for steel mill products stands at 381.162 (BLS, Aug 2026), up 23.4% from a year earlier. Quotes priced off last quarter's material cost miss this move.
  • The U.S. has 3,569 primary metal manufacturing establishments employing about 354,911 workers (Census County Business Patterns, 2023).

Common questions

  • Can rejected castings be credited at full selling price? No, use the documented net value recovered by scrap sale or approved internal reuse. Selling price is not the recovery value of a rejected casting.
  • Where do remelting costs belong? Deduct them from the recovery credit or include them in separate charges, following one consistent cost boundary. Do not count them twice.
  • Does zero rejected count erase containment expense? No, separate containment expense remains. Expense per rejected part is undefined until a rejected count exists.
  • Why enter an allocation percentage? Use it only for a documented split between jobs or responsible cost centers. Enter 100% when this job bears the complete net loss.

Last reviewed 2026-10-06.