Body Shop Labor—Painting

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Sales: Selling price of paint preparation and painting labor performed in the body shop and sold to customers on completed repair orders.

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 5820/6820 and Non FoMoCo (other franchises) in Account 5821/6821.

*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 6820, and a credit to Account 1440.
• See Account 5700/5701, 6700/6701, Sales/Cost of Sales—Labor Franchise/Other—Repair Shop, for methods of calculating cost of sales 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.