diff --git a/erpnext/manufacturing/doctype/bom_creator/bom_creator.py b/erpnext/manufacturing/doctype/bom_creator/bom_creator.py
index e3feac1061a..97849b6f17e 100644
--- a/erpnext/manufacturing/doctype/bom_creator/bom_creator.py
+++ b/erpnext/manufacturing/doctype/bom_creator/bom_creator.py
@@ -203,7 +203,9 @@ class BOMCreator(Document):
 					self,
 				)
 			else:
-				row.rate = flt(self.get_raw_material_cost(row.item_code) * row.conversion_factor)
+				row.rate = flt(
+					self.get_raw_material_cost(row.item_code) / flt(row.qty or 1) * row.conversion_factor
+				)
 
 			row.amount = flt(row.rate) * flt(row.qty)
 			amount += flt(row.amount)