Subcontracting and raw material rate

Hi
This particular logic is still bugging me
i buy a length of 1meter of raw material for 1000Rs
i give it to subcontract for cutting it to 10 pieces at 5Rs each cut
raw material part number : AL6063-D50
IT COMES BACK TO ME AS : SM-D50-100
so
in stock reconciliation: should i value it like this
AL6063-D50 - Rs100
SM-D50-100 - RS 105 or this should be just Rs5
Regards
Hemanth

For Stock Reconciliation the value should be 105 for sure!

@rmehta
Thank you sir