Using Moving Average Materials with MF42N (Repetitive Production)

Version: ECC 6.0
I have a "Is this possible" question. I know this isn't a best business practice, but thought I'd anyway. Here goes ...
A material that uses Moving Average (referenced as Material123 below) has the following two materials in its BOM: (1) Moving Average (Material456), and (2) Non-valuated material, material type = LEER (Material789).
The 1st material in the BOM (Material456) is Liquid Oxygen. This product is purchased from a vendor and received into inventory via movement type 101.
The 2nd material in the BOM is an empty cylinder (Material789)
The parent material (Material123) being produced is gaseous Oxygen (Oxygen in gas form).
Basic production process: Liquid Oxygen is the raw material, it is pressurized and stored in a cylinder in gaseous form (for clarity, you've probably seen cylinders before, the two obvious examples of cylinders are propane cylinders used on barbeques and helium cylinders used to blow-up balloons).
Assumptions: (1) We do not want to do a cost roll, (2) We want to report production (TCode=MF42N) to consume the Bulk Oxygen (Material456) and the cylinder (Material789), and create the finished good (Material123), and (3) We do not want to burden the cost of the parent material (Material123) with direct costs, we only want the material costs.
If you read through the assumptions you can see that this is not proper accounting for a production process (i.e. the direct costs in the production process are not capitalized -- labor, power, etc.), if you can get beyond that I was wondering if anyone has ever set anything like this up? I tried to set this up and report production in my test environment, I got the materials created, the BOM created, but when I tried to report production it gave me an error, it needs a production version and/or a cost collector.
If anyone has done anything like this I'd be interested in knowing if it is possible to report production with a setup like this. Thanks.

Using CO production orders may solve your problem. They dont need PP or product costing to be implemented. Costs can be flexibly posted and there are not many demanding requirements for this.
Tcode:KKF1
Link: [http://help.sap.com/saphelp_erp2004/helpdata/EN/82/e72326b11411d29f60080009b0db33/frameset.htm]
Thanks
Naveen

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