Repair Shop Materials

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Sales: Selling price of rags, cleaning compounds, lubricants, and similar materials used in the process of repairing vehicles in the service department.

Cost of Sales: the cost of such materials.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers.

• Materials are usually charged to customers as a percentage of the total labor and parts price for the job. To make sure that the percentage charged is recovering costs without overcharging customers, the balances in these accounts should be evaluated on a regular basis—at least quarterly. To keep both costs and customer percentages within reasonable limits, it is a good idea to keep materials in a locked cabinet, and have one person assigned to control access.