Excellent Question Subho da
1. Raw material he receives for Sub Con - Has to be received as a Non Valuated Stock, because thats not his own Stock. I forgot the movement type here. You can check with any MM Guy. This will be similar to a Vendor Consignment Stock
2. When you manufacture the Finished Product, it will be 101. The FG is also treated as Non Valuated usually. But some do treat it as Valuated also
3. PGI - 601, as usual
Now coming to PC, it is difficult to comment.. It depends on too many variables
If this guy does Sub Con as an additional activity, then he might have a PC for Sub Con Separately.. if Sub Con is his main business, then the PC structure might revolve around Product lines
Hope this helps
Ajay M