diff --git a/erpnext/manufacturing/doctype/bom/test_bom.py b/erpnext/manufacturing/doctype/bom/test_bom.py
index 16f5c79..d60feb2 100644
--- a/erpnext/manufacturing/doctype/bom/test_bom.py
+++ b/erpnext/manufacturing/doctype/bom/test_bom.py
@@ -202,6 +202,33 @@
 
 		self.assertEqual(bom.items[0].rate, 20)
 
+	def test_bom_cost_with_fg_based_operating_cost(self):
+		bom = frappe.copy_doc(test_records[4])
+		bom.insert()
+
+		raw_material_cost = 0.0
+		op_cost = 0.0
+
+		op_cost = bom.quantity * bom.operating_cost_per_bom_quantity
+
+		for row in bom.items:
+			raw_material_cost += row.amount
+
+		base_raw_material_cost = raw_material_cost * flt(
+			bom.conversion_rate, bom.precision("conversion_rate")
+		)
+		base_op_cost = op_cost * flt(bom.conversion_rate, bom.precision("conversion_rate"))
+
+		# test amounts in selected currency, almostEqual checks for 7 digits by default
+		self.assertAlmostEqual(bom.operating_cost, op_cost)
+		self.assertAlmostEqual(bom.raw_material_cost, raw_material_cost)
+		self.assertAlmostEqual(bom.total_cost, raw_material_cost + op_cost)
+
+		# test amounts in selected currency
+		self.assertAlmostEqual(bom.base_operating_cost, base_op_cost)
+		self.assertAlmostEqual(bom.base_raw_material_cost, base_raw_material_cost)
+		self.assertAlmostEqual(bom.base_total_cost, base_raw_material_cost + base_op_cost)
+
 	def test_subcontractor_sourced_item(self):
 		item_code = "_Test Subcontracted FG Item 1"
 		set_backflush_based_on("Material Transferred for Subcontract")
diff --git a/erpnext/manufacturing/doctype/bom/test_records.json b/erpnext/manufacturing/doctype/bom/test_records.json
index 507d319..e9cbdfe 100644
--- a/erpnext/manufacturing/doctype/bom/test_records.json
+++ b/erpnext/manufacturing/doctype/bom/test_records.json
@@ -162,5 +162,31 @@
   "item": "_Test Variant Item",
   "quantity": 1.0,
   "with_operations": 1
+ },
+ {
+  "items": [
+   {
+    "amount": 5000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item",
+    "parentfield": "items",
+    "qty": 2.0,
+    "rate": 3000.0,
+    "uom": "_Test UOM",
+    "stock_uom": "_Test UOM",
+    "source_warehouse": "_Test Warehouse - _TC",
+    "include_item_in_manufacturing": 1
+   }
+  ],
+  "docstatus": 1,
+  "doctype": "BOM",
+  "is_active": 1,
+  "is_default": 1,
+  "currency": "USD",
+  "item": "_Test Variant Item",
+  "quantity": 1.0,
+  "with_operations": 0,
+  "fg_based_operating_cost": 1,
+  "operating_cost_per_bom_quantity": 140
  }
 ]