Body Shop Labor—Metal Work

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Sales: Selling price of labor performed in the body shop, including sheet metal work and parts repair or replacement, and sold to customers on completed repair orders. (Does not include painting or paint prep.)

Cost of Sales: Cost of above body shop labor sales.

NOTE: Dealers with competitive franchises (Non FoMoCo) separate body labor and report FoMoCo (franchise) labor in Account 5810/6810 and Non FoMoCo (other franchises) in Account 5811/6811.

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

• The gross earnings of body shop technicians and the productive wages of other shop employees are initially charged to Account 1440, Inventory—Labor in Process, through the Payroll Journal. The cost of body shop labor sales is recorded as a debit to Account 6810, and a credit to Account 1440.
• See Account 5700/5701,6700/6701, Sales/Cost of Sales—Labor—Repair Shop, for methods of calculating cost of sale of body shop labor.
• Sales of body shop materials should be accounted for separately from body shop labor and credited to Account 5850, Sales—Body Shop Materials.