Disassembly is not linked to production.  (Don't think of it as reversing a production entry).  You have full manual control over the quantities (but cannot choose the cost tier for FIFO / LIFO items).

If you've consumed the inventory (eg. sold / invoiced), it's not available to disassemble.  Normal.

OK, So we had to do a transaction adjustment to correct the cost of the component because we had an OVERDIST that was affecting the cost as well. But now that we've produced the FINISHED product and the correct cost of the component is in there the "COST OF SALES" is off. Is that normal that the cost of sales would be off and will it eventually fix itself?

If you did an inventory adjustment correctly the only GL accounts you should have hit were Inventory and Inventory Adjustments.

If you did an inventory adjustment correctly the only GL accounts you should have hit were Inventory and Inventory Adjustments.