diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 7d31a1cd15..58b79d1cac 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -494,7 +494,7 @@ class BOM(WebsiteGenerator):
 					'image'			: d.image,
 					'stock_uom'		: d.stock_uom,
 					'stock_qty'		: flt(d.stock_qty),
-					'rate'			: d.base_rate,
+					'rate'			: flt(d.base_rate) / flt(d.conversion_factor),
 					'include_item_in_manufacturing': d.include_item_in_manufacturing
 				}))