diff --git a/erpnext/manufacturing/doctype/bom/bom.js b/erpnext/manufacturing/doctype/bom/bom.js
index c58c89c..9a140f5 100644
--- a/erpnext/manufacturing/doctype/bom/bom.js
+++ b/erpnext/manufacturing/doctype/bom/bom.js
@@ -5,7 +5,10 @@
 
 frappe.ui.form.on("BOM", {
 	setup: function(frm) {
-		frm.add_fetch('buying_price_list', 'currency', 'currency');
+		frm.add_fetch("item", "description", "description");
+		frm.add_fetch("item", "image", "image");
+		frm.add_fetch("item", "item_name", "item_name");
+		frm.add_fetch("item", "stock_uom", "uom");
 
 		frm.set_query("bom_no", "items", function() {
 			return {
@@ -23,6 +26,38 @@
 				}
 			};
 		});
+
+		frm.set_query("item", function() {
+			return {
+				query: "erpnext.controllers.queries.item_query"
+			};
+		});
+
+		frm.set_query("project", function() {
+			return{
+				filters:[
+					['Project', 'status', 'not in', 'Completed, Cancelled']
+				]
+			};
+		});
+
+		frm.set_query("item_code", "items", function() {
+			return {
+				query: "erpnext.controllers.queries.item_query",
+				filters: [["Item", "name", "!=", cur_frm.doc.item]]
+			};
+		});
+
+		frm.set_query("bom_no", "items", function(doc, cdt, cdn) {
+			var d = locals[cdt][cdn];
+			return {
+				filters: {
+					'item': d.item_code,
+					'is_active': 1,
+					'docstatus': 1
+				}
+			};
+		});
 	},
 
 	onload_post_render: function(frm) {
@@ -69,14 +104,14 @@
 });
 
 erpnext.bom.BomController = erpnext.TransactionController.extend({
-	conversion_rate: function(doc, cdt, cdn) {
+	conversion_rate: function(doc) {
 		if(this.frm.doc.currency === this.get_company_currency()) {
 			this.frm.set_value("conversion_rate", 1.0);
 		} else {
 			erpnext.bom.update_cost(doc);
 		}
 	},
-	
+
 	item_code: function(doc, cdt, cdn){
 		var scrap_items = false;
 		var child = locals[cdt][cdn];
@@ -90,7 +125,7 @@
 
 		get_bom_material_detail(doc, cdt, cdn, scrap_items);
 	},
-	conversion_factor: function(doc, cdt, cdn, dont_fetch_price_list_rate) {
+	conversion_factor: function(doc, cdt, cdn) {
 		if(frappe.meta.get_docfield(cdt, "stock_qty", cdn)) {
 			var item = frappe.get_doc(cdt, cdn);
 			frappe.model.round_floats_in(item, ["qty", "conversion_factor"]);
@@ -99,30 +134,24 @@
 			this.toggle_conversion_factor(item);
 		}
 	},
-})
+});
 
 $.extend(cur_frm.cscript, new erpnext.bom.BomController({frm: cur_frm}));
 
-cur_frm.add_fetch("item", "description", "description");
-cur_frm.add_fetch("item", "image", "image");
-cur_frm.add_fetch("item", "item_name", "item_name");
-cur_frm.add_fetch("item", "stock_uom", "uom");
-
-
-cur_frm.cscript.hour_rate = function(doc, dt, dn) {
+cur_frm.cscript.hour_rate = function(doc) {
 	erpnext.bom.calculate_op_cost(doc);
 	erpnext.bom.calculate_total(doc);
-}
+};
 
 cur_frm.cscript.time_in_mins = cur_frm.cscript.hour_rate;
 
 cur_frm.cscript.bom_no	= function(doc, cdt, cdn) {
 	get_bom_material_detail(doc, cdt, cdn, false);
-}
+};
 
 cur_frm.cscript.is_default = function(doc) {
 	if (doc.is_default) cur_frm.set_value("is_active", 1);
-}
+};
 
 var get_bom_material_detail= function(doc, cdt, cdn, scrap_items) {
 	var d = locals[cdt][cdn];
@@ -141,6 +170,7 @@
 				$.extend(d, r.message);
 				refresh_field("items");
 				refresh_field("scrap_items");
+
 				doc = locals[doc.doctype][doc.name];
 				erpnext.bom.calculate_rm_cost(doc);
 				erpnext.bom.calculate_scrap_materials_cost(doc);
@@ -149,13 +179,13 @@
 			freeze: true
 		});
 	}
-}
+};
 
-cur_frm.cscript.qty = function(doc, cdt, cdn) {
+cur_frm.cscript.qty = function(doc) {
 	erpnext.bom.calculate_rm_cost(doc);
 	erpnext.bom.calculate_scrap_materials_cost(doc);
 	erpnext.bom.calculate_total(doc);
-}
+};
 
 cur_frm.cscript.rate = function(doc, cdt, cdn) {
 	var d = locals[cdt][cdn];
@@ -173,14 +203,14 @@
 		erpnext.bom.calculate_scrap_materials_cost(doc);
 		erpnext.bom.calculate_total(doc);
 	}
-}
+};
 
 erpnext.bom.update_cost = function(doc) {
 	erpnext.bom.calculate_op_cost(doc);
 	erpnext.bom.calculate_rm_cost(doc);
 	erpnext.bom.calculate_scrap_materials_cost(doc);
 	erpnext.bom.calculate_total(doc);
-}
+};
 
 erpnext.bom.calculate_op_cost = function(doc) {
 	var op = doc.operations || [];
@@ -189,7 +219,7 @@
 
 	for(var i=0;i<op.length;i++) {
 		var operating_cost = flt(flt(op[i].hour_rate) * flt(op[i].time_in_mins) / 60, 2);
-		var base_operating_cost = flt(flt(op[i].base_hour_rate) * flt(op[i].time_in_mins) / 60, 2);
+		var base_operating_cost = flt(operating_cost * doc.conversion_rate, 2);
 		frappe.model.set_value('BOM Operation',op[i].name, "operating_cost", operating_cost);
 		frappe.model.set_value('BOM Operation',op[i].name, "base_operating_cost", base_operating_cost);
 
@@ -197,7 +227,7 @@
 		doc.base_operating_cost += base_operating_cost;
 	}
 	refresh_field(['operating_cost', 'base_operating_cost']);
-}
+};
 
 // rm : raw material
 erpnext.bom.calculate_rm_cost = function(doc) {
@@ -206,19 +236,23 @@
 	var base_total_rm_cost = 0;
 	for(var i=0;i<rm.length;i++) {
 		var amount = flt(rm[i].rate) * flt(rm[i].qty);
-		var base_amount = flt(rm[i].rate) * flt(doc.conversion_rate) * flt(rm[i].qty);
-		frappe.model.set_value('BOM Item', rm[i].name, 'base_rate', flt(rm[i].rate) * flt(doc.conversion_rate))
-		frappe.model.set_value('BOM Item', rm[i].name, 'amount', amount)
-		frappe.model.set_value('BOM Item', rm[i].name, 'qty_consumed_per_unit', flt(rm[i].qty)/flt(doc.quantity))
-		frappe.model.set_value('BOM Item', rm[i].name, 'base_amount', base_amount)
+		var base_amount = amount * flt(doc.conversion_rate);
+
+		frappe.model.set_value('BOM Item', rm[i].name, 'base_rate',
+			flt(rm[i].rate) * flt(doc.conversion_rate));
+		frappe.model.set_value('BOM Item', rm[i].name, 'amount', amount);
+		frappe.model.set_value('BOM Item', rm[i].name, 'base_amount', base_amount);
+		frappe.model.set_value('BOM Item', rm[i].name,
+			'qty_consumed_per_unit', flt(rm[i].stock_qty)/flt(doc.quantity));
+
 		total_rm_cost += amount;
 		base_total_rm_cost += base_amount;
 	}
 	cur_frm.set_value("raw_material_cost", total_rm_cost);
 	cur_frm.set_value("base_raw_material_cost", base_total_rm_cost);
-}
+};
 
-//sm : scrap material
+// sm : scrap material
 erpnext.bom.calculate_scrap_materials_cost = function(doc) {
 	var sm = doc.scrap_items || [];
 	var total_sm_cost = 0;
@@ -226,64 +260,34 @@
 
 	for(var i=0;i<sm.length;i++) {
 		var base_rate = flt(sm[i].rate) * flt(doc.conversion_rate);
-		var amount =	flt(sm[i].rate) * flt(sm[i].qty);
-		var base_amount =	flt(sm[i].rate) * flt(sm[i].qty) * flt(doc.conversion_rate);
+		var amount = flt(sm[i].rate) * flt(sm[i].stock_qty);
+		var base_amount = amount * flt(doc.conversion_rate);
+
 		frappe.model.set_value('BOM Scrap Item',sm[i].name, 'base_rate', base_rate);
 		frappe.model.set_value('BOM Scrap Item',sm[i].name, 'amount', amount);
 		frappe.model.set_value('BOM Scrap Item',sm[i].name, 'base_amount', base_amount);
-		
+
 		total_sm_cost += amount;
 		base_total_sm_cost += base_amount;
 	}
-	
+
 	cur_frm.set_value("scrap_material_cost", total_sm_cost);
 	cur_frm.set_value("base_scrap_material_cost", base_total_sm_cost);
-}
+};
 
 // Calculate Total Cost
 erpnext.bom.calculate_total = function(doc) {
 	var total_cost = flt(doc.operating_cost) + flt(doc.raw_material_cost) - flt(doc.scrap_material_cost);
-	var base_total_cost = flt(doc.base_operating_cost) + flt(doc.base_raw_material_cost) - flt(doc.base_scrap_material_cost);
+	var base_total_cost = flt(doc.base_operating_cost) + flt(doc.base_raw_material_cost)
+		- flt(doc.base_scrap_material_cost);
+
 	cur_frm.set_value("total_cost", total_cost);
 	cur_frm.set_value("base_total_cost", base_total_cost);
-}
+};
 
-
-cur_frm.fields_dict['item'].get_query = function(doc) {
-	return{
-		query: "erpnext.controllers.queries.item_query"
-	}
-}
-
-cur_frm.fields_dict['project'].get_query = function(doc, dt, dn) {
-	return{
-		filters:[
-			['Project', 'status', 'not in', 'Completed, Cancelled']
-		]
-	}
-}
-
-cur_frm.fields_dict['items'].grid.get_field('item_code').get_query = function(doc) {
-	return{
-		query: "erpnext.controllers.queries.item_query",
-		filters: [["Item", "name", "!=", cur_frm.doc.item]]
-	}
-}
-
-cur_frm.fields_dict['items'].grid.get_field('bom_no').get_query = function(doc, cdt, cdn) {
-	var d = locals[cdt][cdn];
-	return{
-		filters:{
-			'item': d.item_code,
-			'is_active': 1,
-			'docstatus': 1
-		}
-	}
-}
-
-cur_frm.cscript.validate = function(doc, dt, dn) {
-	erpnext.bom.update_cost(doc)
-}
+cur_frm.cscript.validate = function(doc) {
+	erpnext.bom.update_cost(doc);
+};
 
 frappe.ui.form.on("BOM Operation", "operation", function(frm, cdt, cdn) {
 	var d = locals[cdt][cdn];
@@ -304,7 +308,7 @@
 				frappe.model.set_value(d.doctype, d.name, "workstation", data.message.workstation);
 			}
 		}
-	})
+	});
 });
 
 frappe.ui.form.on("BOM Operation", "workstation", function(frm, cdt, cdn) {
@@ -317,21 +321,22 @@
 			name: d.workstation
 		},
 		callback: function (data) {
-			frappe.model.set_value(d.doctype, d.name, "hour_rate", data.message.hour_rate);
-			frappe.model.set_value(d.doctype, d.name, "base_hour_rate", flt(data.message.hour_rate) * flt(frm.doc.conversion_rate));
+			frappe.model.set_value(d.doctype, d.name, "base_hour_rate", data.message.hour_rate);
+			frappe.model.set_value(d.doctype, d.name, "hour_rate",
+				flt(flt(data.message.hour_rate) / flt(frm.doc.conversion_rate)), 2);
+
 			erpnext.bom.calculate_op_cost(frm.doc);
 			erpnext.bom.calculate_total(frm.doc);
 		}
-	})
+	});
 });
 
 frappe.ui.form.on("BOM Item", "qty", function(frm, cdt, cdn) {
 	var d = locals[cdt][cdn];
 	d.stock_qty = d.qty * d.conversion_factor;
-	refresh_field("items");
+	refresh_field("stock_qty", d.name, d.parentfield);
 });
- 
- 
+
 frappe.ui.form.on("BOM Operation", "operations_remove", function(frm) {
 	erpnext.bom.calculate_op_cost(frm.doc);
 	erpnext.bom.calculate_total(frm.doc);
@@ -344,7 +349,7 @@
 
 var toggle_operations = function(frm) {
 	frm.toggle_display("operations_section", cint(frm.doc.with_operations) == 1);
-}
+};
 
 frappe.ui.form.on("BOM", "with_operations", function(frm) {
 	if(!cint(frm.doc.with_operations)) {
@@ -355,4 +360,4 @@
 
 cur_frm.cscript.image = function() {
 	refresh_field("image_view");
-}
+};
diff --git a/erpnext/manufacturing/doctype/bom/bom.json b/erpnext/manufacturing/doctype/bom/bom.json
index 46a1ffd..2558df3 100644
--- a/erpnext/manufacturing/doctype/bom/bom.json
+++ b/erpnext/manufacturing/doctype/bom/bom.json
@@ -328,6 +328,37 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "fieldname": "company", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Company", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 1, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "currency_detail", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -1057,37 +1088,6 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "fieldname": "company", 
-   "fieldtype": "Link", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Company", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Company", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 1, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
    "fieldname": "amended_from", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -1322,7 +1322,7 @@
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
    "bold": 0, 
-   "collapsible": 0, 
+   "collapsible": 1, 
    "columns": 0, 
    "depends_on": "eval:!doc.__islocal", 
    "fieldname": "section_break0", 
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index e48a002..bf5fef5 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -2,7 +2,7 @@
 # License: GNU General Public License v3. See license.txt
 
 from __future__ import unicode_literals
-import frappe
+import frappe, erpnext
 from frappe.utils import cint, cstr, flt
 from frappe import _
 from erpnext.setup.utils import get_exchange_rate
@@ -41,16 +41,12 @@
 		self.name = 'BOM-' + self.item + ('-%.3i' % idx)
 
 	def validate(self):
-		# if not self.route:
 		self.route = frappe.scrub(self.name).replace('_', '-')
 		self.clear_operations()
 		self.validate_main_item()
 		self.validate_currency()
 		self.set_conversion_rate()
-
-		from erpnext.utilities.transaction_base import validate_uom_is_integer
-		validate_uom_is_integer(self, "stock_uom", "stock_qty", "BOM Item")
-
+		self.validate_uom_is_interger()
 		self.update_stock_qty()
 		self.set_bom_material_details()
 		self.validate_materials()
@@ -96,14 +92,18 @@
 
 	def set_bom_material_details(self):
 		for item in self.get("items"):
-			ret = self.get_bom_material_detail({"item_code": item.item_code, "item_name": item.item_name, "bom_no": item.bom_no,
-				"stock_qty": item.stock_qty})
+			self.validate_bom_currecny(item)
+
+			ret = self.get_bom_material_detail({
+				"item_code": item.item_code, 
+				"item_name": item.item_name, 
+				"bom_no": item.bom_no,
+				"stock_qty": item.stock_qty
+			})
 			for r in ret:
 				if not item.get(r):
 					item.set(r, ret[r])
 
-			self.validate_bom_currecny(item)
-
 	def get_bom_material_detail(self, args=None):
 		""" Get raw material details like uom, desc and rate"""
 		if not args:
@@ -126,17 +126,19 @@
 			 'image'		: item and args['image'] or '',
 			 'stock_uom'	: item and args['stock_uom'] or '',
 			 'uom'			: item and args['stock_uom'] or '',
- 			 'conversion_factor'	: 1,
+ 			 'conversion_factor': 1,
 			 'bom_no'		: args['bom_no'],
-			 'rate'			: rate,
+			 'rate'			: rate / self.conversion_rate,
+			 'qty'			: args.get("qty") or args.get("stock_qty") or 1,
 			 'stock_qty'	: args.get("qty") or args.get("stock_qty") or 1,
-			 'base_rate'	: rate if self.company_currency() == self.currency else rate * self.conversion_rate
+			 'base_rate'	: rate
 		}
 		return ret_item
 
 	def validate_bom_currecny(self, item):
 		if item.get('bom_no') and frappe.db.get_value('BOM', item.get('bom_no'), 'currency') != self.currency:
-			frappe.throw(_("Row {0}: Currency of the BOM #{1} should be equal to the selected currency {2}").format(item.idx, item.bom_no, self.currency))
+			frappe.throw(_("Row {0}: Currency of the BOM #{1} should be equal to the selected currency {2}")
+				.format(item.idx, item.bom_no, self.currency))
 
 	def get_rm_rate(self, arg):
 		"""	Get raw material rate as per selected method, if bom exists takes bom cost """
@@ -148,17 +150,21 @@
 			if self.rm_cost_as_per == 'Valuation Rate':
 				rate = self.get_valuation_rate(arg)
 			elif self.rm_cost_as_per == 'Last Purchase Rate':
-				rate = arg['last_purchase_rate']
+				rate = arg['last_purchase_rate'] \
+					or frappe.db.get_value("Item", arg['item_code'], "last_purchase_rate")
 			elif self.rm_cost_as_per == "Price List":
 				if not self.buying_price_list:
 					frappe.throw(_("Please select Price List"))
-				rate = frappe.db.get_value("Item Price", {"price_list": self.buying_price_list,
-					"item_code": arg["item_code"]}, "price_list_rate") or 0
+				rate = frappe.db.get_value("Item Price",
+					{"price_list": self.buying_price_list, "item_code": arg["item_code"]}, "price_list_rate")
+				price_list_currency = frappe.db.get_value("Price List", self.buying_price_list, "currency")
+				if price_list_currency != self.company_currency():
+					rate = flt(rate * self.conversion_rate)
 
 			if arg['bom_no'] and (not rate or self.set_rate_of_sub_assembly_item_based_on_bom):
 				rate = self.get_bom_unitcost(arg['bom_no'])
 
-		return rate
+		return flt(rate)
 
 	def update_cost(self, update_parent=True, from_child_bom=False):
 		if self.docstatus == 2:
@@ -167,10 +173,9 @@
 		existing_bom_cost = self.total_cost
 
 		for d in self.get("items"):
-			rate = self.get_bom_material_detail({'item_code': d.item_code, 'bom_no': d.bom_no,
-				'stock_qty': d.stock_qty})["rate"]
+			rate = self.get_rm_rate({"item_code": d.item_code, "bom_no": d.bom_no})
 			if rate:
-				d.rate = rate
+				d.rate = rate * flt(d.conversion_factor) / flt(self.conversion_rate)
 
 		if self.docstatus == 1:
 			self.flags.ignore_validate_update_after_submit = True
@@ -190,7 +195,7 @@
 			frappe.msgprint(_("Cost Updated"))
 
 	def get_bom_unitcost(self, bom_no):
-		bom = frappe.db.sql("""select name, total_cost/quantity as unit_cost from `tabBOM`
+		bom = frappe.db.sql("""select name, base_total_cost/quantity as unit_cost from `tabBOM`
 			where is_active = 1 and name = %s""", bom_no, as_dict=1)
 		return bom and bom[0]['unit_cost'] or 0
 
@@ -253,14 +258,14 @@
 			frappe.throw(_("Quantity should be greater than 0"))
 
 	def validate_currency(self):
-		if self.rm_cost_as_per == 'Price List' and \
-			frappe.db.get_value('Price List', self.buying_price_list, 'currency') != self.currency:
-			frappe.throw(_("Currency of the price list {0} is not similar with the selected currency {1}").format(self.buying_price_list, self.currency))
+		if self.rm_cost_as_per == 'Price List':
+			price_list_currency = frappe.db.get_value('Price List', self.buying_price_list, 'currency')
+			if price_list_currency not in (self.currency, self.company_currency()):
+				frappe.throw(_("Currency of the price list {0} must be {1} or {2}")
+					.format(self.buying_price_list, self.currency, self.company_currency()))
 
-			
 	def update_stock_qty(self):
 		for m in self.get('items'):
-		
 			if not m.conversion_factor:
 				m.conversion_factor = flt(get_conversion_factor(m.item_code, m.uom)['conversion_factor'])
 			if m.uom and m.qty:
@@ -268,10 +273,17 @@
 			if not m.uom and m.stock_uom:
 				m.uom = m.stock_uom
 				m.qty = m.stock_qty
- 
- 
+
+	def validate_uom_is_interger(self):
+		from erpnext.utilities.transaction_base import validate_uom_is_integer
+		validate_uom_is_integer(self, "uom", "qty", "BOM Item")
+		validate_uom_is_integer(self, "stock_uom", "stock_qty", "BOM Item")
+
 	def set_conversion_rate(self):
-		self.conversion_rate = get_exchange_rate(self.currency, self.company_currency())
+		if self.currency == self.company_currency():
+			self.conversion_rate = 1
+		elif self.conversion_rate == 1 or flt(self.conversion_rate) <= 0:
+			self.conversion_rate = get_exchange_rate(self.currency, self.company_currency())
 
 	def validate_materials(self):
 		""" Validate raw material entries """
@@ -289,7 +301,7 @@
 		for m in self.get('items'):
 			if m.bom_no:
 				validate_bom_no(m.item_code, m.bom_no)
-			if flt(m.stock_qty) <= 0:
+			if flt(m.qty) <= 0:
 				frappe.throw(_("Quantity required for Item {0} in row {1}").format(m.item_code, m.idx))
 			check_list.append(m)
 
@@ -361,12 +373,13 @@
 		for d in self.get('operations'):
 			if d.workstation:
 				if not d.hour_rate:
-					d.hour_rate = flt(frappe.db.get_value("Workstation", d.workstation, "hour_rate"))
+					hour_rate = flt(frappe.db.get_value("Workstation", d.workstation, "hour_rate"))
+					d.hour_rate = hour_rate / flt(self.conversion_rate)
 
 			if d.hour_rate and d.time_in_mins:
-				d.operating_cost = flt(d.hour_rate) * flt(d.time_in_mins) / 60.0
 				d.base_hour_rate = flt(d.hour_rate) * flt(self.conversion_rate)
-				d.base_operating_cost = flt(d.base_hour_rate) * flt(d.time_in_mins) / 60.0
+				d.operating_cost = flt(d.hour_rate) * flt(d.time_in_mins) / 60.0
+				d.base_operating_cost = flt(d.operating_cost) * flt(self.conversion_rate)
 
 			self.operating_cost += flt(d.operating_cost)
 			self.base_operating_cost += flt(d.base_operating_cost)
@@ -378,9 +391,11 @@
 
 		for d in self.get('items'):
 			d.base_rate = flt(d.rate) * flt(self.conversion_rate)
-			d.amount = flt(d.rate, self.precision("rate", d)) * flt(d.stock_qty, self.precision("stock_qty", d))
+			d.amount = flt(d.rate, d.precision("rate")) * flt(d.qty, d.precision("qty"))
 			d.base_amount = d.amount * flt(self.conversion_rate)
-			d.qty_consumed_per_unit = flt(d.stock_qty, self.precision("stock_qty", d)) / flt(self.quantity, self.precision("quantity"))
+			d.qty_consumed_per_unit = flt(d.stock_qty, d.precision("stock_qty")) \
+				/ flt(self.quantity, self.precision("quantity"))
+
 			total_rm_cost += d.amount
 			base_total_rm_cost += d.base_amount
 
@@ -394,7 +409,7 @@
 
 		for d in self.get('scrap_items'):
 			d.base_rate = d.rate * self.conversion_rate
-			d.amount = flt(d.rate, self.precision("rate", d)) * flt(d.stock_qty, self.precision("stock_qty", d))
+			d.amount = flt(d.rate, d.precision("rate")) * flt(d.stock_qty, d.precision("stock_qty"))
 			d.base_amount = d.amount * self.conversion_rate
 			total_sm_cost += d.amount
 			base_total_sm_cost += d.base_amount
@@ -421,12 +436,12 @@
 					'description'	: d.description,
 					'image'			: d.image,
 					'stock_uom'		: d.stock_uom,
-					'stock_qty'			: flt(d.stock_qty),
+					'stock_qty'		: flt(d.stock_qty),
 					'rate'			: d.base_rate,
 				}))
 
 	def company_currency(self):
-		return frappe.db.get_value('Company', self.company, 'default_currency')
+		return erpnext.get_company_currency(self.company)
 
 	def add_to_cur_exploded_items(self, args):
 		if self.cur_exploded_items.get(args.item_code):
@@ -459,6 +474,7 @@
 		"Add items to Flat BOM table"
 		frappe.db.sql("""delete from `tabBOM Explosion Item` where parent=%s""", self.name)
 		self.set('exploded_items', [])
+
 		for d in sorted(self.cur_exploded_items, key=itemgetter(0)):
 			ch = self.append('exploded_items', {})
 			for i in self.cur_exploded_items[d].keys():
diff --git a/erpnext/manufacturing/doctype/bom/test_bom.py b/erpnext/manufacturing/doctype/bom/test_bom.py
index d678444..b2684e3 100644
--- a/erpnext/manufacturing/doctype/bom/test_bom.py
+++ b/erpnext/manufacturing/doctype/bom/test_bom.py
@@ -14,14 +14,16 @@
 class TestBOM(unittest.TestCase):
 	def test_get_items(self):
 		from erpnext.manufacturing.doctype.bom.bom import get_bom_items_as_dict
-		items_dict = get_bom_items_as_dict(bom=get_default_bom(), company="_Test Company", qty=1, fetch_exploded=0)
+		items_dict = get_bom_items_as_dict(bom=get_default_bom(),
+			company="_Test Company", qty=1, fetch_exploded=0)
 		self.assertTrue(test_records[2]["items"][0]["item_code"] in items_dict)
 		self.assertTrue(test_records[2]["items"][1]["item_code"] in items_dict)
 		self.assertEquals(len(items_dict.values()), 2)
 
 	def test_get_items_exploded(self):
 		from erpnext.manufacturing.doctype.bom.bom import get_bom_items_as_dict
-		items_dict = get_bom_items_as_dict(bom=get_default_bom(), company="_Test Company", qty=1, fetch_exploded=1)
+		items_dict = get_bom_items_as_dict(bom=get_default_bom(),
+			company="_Test Company", qty=1, fetch_exploded=1)
 		self.assertTrue(test_records[2]["items"][0]["item_code"] in items_dict)
 		self.assertFalse(test_records[2]["items"][1]["item_code"] in items_dict)
 		self.assertTrue(test_records[0]["items"][0]["item_code"] in items_dict)
@@ -75,5 +77,50 @@
 			where item_code='_Test Item 2' and docstatus=1""", as_dict=1):
 				self.assertEqual(d.rate, rm_rate + 10)
 
+	def test_bom_cost(self):
+		bom = frappe.copy_doc(test_records[2])
+		bom.insert()
+
+		# test amounts in selected currency
+		self.assertEqual(bom.operating_cost, 100)
+		self.assertEqual(bom.raw_material_cost, 8000)
+		self.assertEqual(bom.total_cost, 8100)
+
+		# test amounts in selected currency
+		self.assertEqual(bom.base_operating_cost, 6000)
+		self.assertEqual(bom.base_raw_material_cost, 480000)
+		self.assertEqual(bom.base_total_cost, 486000)
+
+	def test_bom_cost_multi_uom_multi_currency(self):
+		for item_code, rate in (("_Test Item", 3600), ("_Test Item Home Desktop Manufactured", 3000)):
+			item_price = frappe.new_doc("Item Price")
+			item_price.price_list = "_Test Price List"
+			item_price.item_code = item_code
+			item_price.price_list_rate = rate
+			item_price.insert()
+		
+		bom = frappe.copy_doc(test_records[2])
+		bom.rm_cost_as_per = "Price List"
+		bom.buying_price_list = "_Test Price List"
+		bom.items[0].uom = "_Test UOM 1"
+		bom.items[0].conversion_factor = 5
+		bom.insert()
+
+		bom.update_cost()
+
+		# test amounts in selected currency
+		self.assertEqual(bom.items[0].rate, 300)
+		self.assertEqual(bom.items[1].rate, 50)
+		self.assertEqual(bom.operating_cost, 100)
+		self.assertEqual(bom.raw_material_cost, 450)
+		self.assertEqual(bom.total_cost, 550)
+
+		# test amounts in selected currency
+		self.assertEqual(bom.items[0].base_rate, 18000)
+		self.assertEqual(bom.items[1].base_rate, 3000)
+		self.assertEqual(bom.base_operating_cost, 6000)
+		self.assertEqual(bom.base_raw_material_cost, 27000)
+		self.assertEqual(bom.base_total_cost, 33000)
+
 def get_default_bom(item_code="_Test FG Item 2"):
 	return frappe.db.get_value("BOM", {"item": item_code, "is_active": 1, "is_default": 1})
diff --git a/erpnext/manufacturing/doctype/bom/test_records.json b/erpnext/manufacturing/doctype/bom/test_records.json
index 6c24871..cc95642 100644
--- a/erpnext/manufacturing/doctype/bom/test_records.json
+++ b/erpnext/manufacturing/doctype/bom/test_records.json
@@ -6,8 +6,9 @@
     "doctype": "BOM Item",
     "item_code": "_Test Serialized Item With Series",
     "parentfield": "items",
-    "stock_qty": 1.0,
+    "qty": 1.0,
     "rate": 5000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    },
@@ -16,8 +17,9 @@
     "doctype": "BOM Item",
     "item_code": "_Test Item 2",
     "parentfield": "items",
-    "stock_qty": 2.0,
+    "qty": 2.0,
     "rate": 1000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    }
@@ -34,9 +36,9 @@
   "scrap_items":[
   {
    "amount": 2000.0,
-   "doctype": "BOM Item",
+   "doctype": "BOM Scrap Item",
    "item_code": "_Test Item Home Desktop 100",
-   "parentfield": "items",
+   "parentfield": "scrap_items",
    "stock_qty": 1.0,
    "rate": 2000.0,
    "stock_uom": "_Test UOM"
@@ -48,8 +50,9 @@
     "doctype": "BOM Item",
     "item_code": "_Test Item",
     "parentfield": "items",
-    "stock_qty": 1.0,
+    "qty": 1.0,
     "rate": 5000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    },
@@ -58,8 +61,9 @@
     "doctype": "BOM Item",
     "item_code": "_Test Item Home Desktop 100",
     "parentfield": "items",
-    "stock_qty": 2.0,
+    "qty": 2.0,
     "rate": 1000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    }
@@ -78,6 +82,7 @@
     "operation": "_Test Operation 1",
     "description": "_Test",
     "workstation": "_Test Workstation 1",
+    "hour_rate": 100,
     "time_in_mins": 60,
     "operating_cost": 100
    }
@@ -88,19 +93,21 @@
     "doctype": "BOM Item",
     "item_code": "_Test Item",
     "parentfield": "items",
-    "stock_qty": 1.0,
+    "qty": 1.0,
     "rate": 5000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    },
    {
-    "amount": 2000.0,
+    "amount": 3000.0,
     "bom_no": "BOM-_Test Item Home Desktop Manufactured-001",
     "doctype": "BOM Item",
     "item_code": "_Test Item Home Desktop Manufactured",
     "parentfield": "items",
-    "stock_qty": 3.0,
+    "qty": 3.0,
     "rate": 1000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    }
@@ -110,6 +117,8 @@
   "is_active": 1,
   "is_default": 1,
   "currency": "USD",
+  "conversion_rate": 60,
+  "company": "_Test Company",
   "item": "_Test FG Item 2",
   "quantity": 1.0,
   "with_operations": 1
@@ -130,8 +139,9 @@
     "doctype": "BOM Item",
     "item_code": "_Test Item",
     "parentfield": "items",
-    "stock_qty": 2.0,
+    "qty": 2.0,
     "rate": 3000.0,
+    "uom": "_Test UOM",
     "stock_uom": "_Test UOM",
 	"source_warehouse": "_Test Warehouse - _TC"
    }
diff --git a/erpnext/manufacturing/doctype/bom_item/bom_item.json b/erpnext/manufacturing/doctype/bom_item/bom_item.json
index e0c4bab..5147bd0 100644
--- a/erpnext/manufacturing/doctype/bom_item/bom_item.json
+++ b/erpnext/manufacturing/doctype/bom_item/bom_item.json
@@ -171,7 +171,7 @@
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
    "bold": 0, 
-   "collapsible": 0, 
+   "collapsible": 1, 
    "columns": 0, 
    "fieldname": "section_break_5", 
    "fieldtype": "Section Break", 
@@ -182,6 +182,7 @@
    "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
+   "label": "Description", 
    "length": 0, 
    "no_copy": 0, 
    "permlevel": 0, 
@@ -373,7 +374,7 @@
    "read_only": 0, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
-   "reqd": 0, 
+   "reqd": 1, 
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
@@ -404,7 +405,7 @@
    "read_only": 0, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
-   "reqd": 0, 
+   "reqd": 1, 
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
@@ -464,7 +465,39 @@
    "read_only": 1, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
-   "reqd": 1, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "stock_uom", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Stock UOM", 
+   "length": 0, 
+   "no_copy": 0, 
+   "oldfieldname": "stock_uom", 
+   "oldfieldtype": "Data", 
+   "options": "UOM", 
+   "permlevel": 0, 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
@@ -505,8 +538,8 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "fieldname": "stock_uom", 
-   "fieldtype": "Link", 
+   "fieldname": "rate_amount_section", 
+   "fieldtype": "Section Break", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
@@ -514,16 +547,45 @@
    "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
-   "label": "Stock UOM", 
+   "label": "Rate & Amount", 
    "length": 0, 
    "no_copy": 0, 
-   "oldfieldname": "stock_uom", 
-   "oldfieldtype": "Data", 
-   "options": "UOM", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "description": "", 
+   "fieldname": "rate", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 1, 
+   "in_standard_filter": 0, 
+   "label": "Rate", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "currency", 
    "permlevel": 0, 
    "print_hide": 0, 
    "print_hide_if_no_value": 0, 
-   "read_only": 1, 
+   "read_only": 0, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
    "reqd": 1, 
@@ -537,8 +599,7 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "description": "See \"Rate Of Materials Based On\" in Costing Section", 
-   "fieldname": "rate", 
+   "fieldname": "base_rate", 
    "fieldtype": "Currency", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
@@ -547,17 +608,47 @@
    "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
-   "label": "Rate", 
+   "label": "Basic Rate (Company Currency)", 
    "length": 0, 
    "no_copy": 0, 
-   "options": "currency", 
+   "options": "Company:company:default_currency", 
    "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 1, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "column_break_21", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
    "print_hide": 0, 
    "print_hide_if_no_value": 0, 
    "read_only": 0, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
-   "reqd": 1, 
+   "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
@@ -602,37 +693,6 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "fieldname": "base_rate", 
-   "fieldtype": "Currency", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Basic Rate (Company Currency)", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 1, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 1, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
    "fieldname": "base_amount", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -700,7 +760,7 @@
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
    "in_global_search": 0, 
-   "in_list_view": 1, 
+   "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Scrap %", 
    "length": 0, 
@@ -760,7 +820,7 @@
  "issingle": 0, 
  "istable": 1, 
  "max_attachments": 0, 
- "modified": "2017-07-04 17:42:37.218408", 
+ "modified": "2017-08-18 16:22:46.078661", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "BOM Item", 
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index c14cbab..d874234 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -437,3 +437,4 @@
 erpnext.patches.v8_6.rename_bom_update_tool
 erpnext.patches.v8_9.add_setup_progress_actions
 erpnext.patches.v8_9.rename_company_sales_target_field
+erpnext.patches.v8_8.set_bom_rate_as_per_uom
\ No newline at end of file
diff --git a/erpnext/patches/v8_8/__init__.py b/erpnext/patches/v8_8/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/patches/v8_8/__init__.py
diff --git a/erpnext/patches/v8_8/set_bom_rate_as_per_uom.py b/erpnext/patches/v8_8/set_bom_rate_as_per_uom.py
new file mode 100644
index 0000000..5b169cd
--- /dev/null
+++ b/erpnext/patches/v8_8/set_bom_rate_as_per_uom.py
@@ -0,0 +1,13 @@
+# Copyright (c) 2017, Frappe and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	frappe.db.sql("""
+		update `tabBOM Item`
+		set rate = rate * conversion_factor
+		where uom != stock_uom and docstatus < 2
+			and conversion_factor not in (0, 1)
+	""")
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