October 30, 2016 admin

Body Shop Labor—Internal

Sales and Cost of Sales

BODY SHOP LABOR—INTERNAL ACCOUNT
SALES  5840/5841
COST OF SALES  6840/6841

ACCOUNT EXPLANATION

Sales: Internal selling price of body shop labor sold to other departments on completed repair orders, including new vehicle preparation, installation of accessories, used vehicle reconditioning, and maintenance of company vehicles.

Cost of Sales: Cost of above labor.

NOTE: Dealers with competitive franchises (Non FoMoCo) separate body labor and report FoMoCo (franchise) labor in Account 5840/6840 and Non FoMoCo (other franchises) in Account 5841/6841.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Preparation of new car for delivery to customer I
    Pre-Delivery—New 7030
      Sales—Body Shop Labor Franchise/Other—Internal (at internal rate) 5840, 5841
    Cost of Sales—Body Shop Labor Franchise/Other—Internal (at cost) 6840, 6841
      Inventory—Labor in Process 1440
             
  Reconditioning work on used car for lot display I
    Inventory—Used Cars Franchise/Other 1350, 1330
      Sales—Body Shop Labor Franchise/Other—Internal (at internal rate) 5840, 5841
    Cost of Sales—Body Shop Labor Franchise/Other—Internal (at cost)   6840, 6841  
      Inventory—Labor in Process     1440
             
  Body repair labor on company vehicle I
    Equipment & Vehicle Maintenance—General 8780
      Sales—Body Shop Labor Franchise/Other—Internal (at internal rate) 5840, 5841
    Cost of Sales—Body Shop Labor Franchise/Other—Internal (at cost)   6840, 6841
      Inventory—Labor in Process     1440
           
  Accessories installed in a new car I  
    Inventory—New Cars Franchise/Other   1300, 1305
      Inventory—Parts—Ford/Other     1400, 1410
      Sales—Body Shop Labor Franchise/Other—Internal     5840, 5841
COMMENTS