You missed a step or you have the wrong report. Even your graphic is showing the wrong information. It shows transactions not items in the assembly and subassemblies.

We need a report that lists out all the items (including non-inventory parts and services) that are in the assembly AND the sub-assemblies needed to produce a part.

If ANYONE actually has this answer it would be great, just spent over 1 hour on phone with an advanced QuickBooks support person and she could not locate how to get this report either.