479 Paint and Body Shop Materials

Sales

Fixed Operations

Sales Synopsis

Account 479 is established to record the sales of Paint and Body Shop Materials used on Body Shop repairs.

Debits

Credits

 

  1. Actual selling price of Paint, Body Shop and similar Material sold

  2. Actual selling price (at claim rate) of Paint, Body Shop and similar Materials for which Warranty and Transportation Claims are filed

 

679 Paint and Body Shop Materials

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 679 is established to record the Cost of Sales of Paint and Body Shop Materials sold in Account 479 above.

Debits

Credits

  1. Cost of Paint, Body Shop and similar Materials sold

  2. Adjustment of the Paint and Body Shop Materials inventory

 

  1. Adjustment of the Paint and Body Shop Materials inventory

 

Example 1

Record a customer cash sale of $3,740 for body shop labor, parts and materials. .  The body labor sale is $740 and the paint labor sale is $595.  The parts sale is $1,975.  The paint and body shop materials are $315 and the sales tax is $115.  The cost of the labor is $795 with $350 due to paint labor and $445 for body shop labor.  The parts cost is $1,380.  The cost of body shop materials is $235.

Journal: Service Sales - Cash

Entry:

 

Debit

Credit

Account 225

Cash Sales Clearing

$3,740

 

Account 670

Cost of Sales – Customer Paint Labor – Cars & Trucks

$350

 

Account 671

Cost of Sales – Customer Body Labor – Cars & Trucks

$445

 

Account 677

Cost of Sales – Parts - Body Customer Repair Orders – Cars & Trucks

$1,380

 

Account 679

Cost of Sales – Paint & Body Shop Materials

$235

 

Account 242

Inventory – Parts & Accessories

 

$1,380

Account 245

Inventory – Paint & Body Shop Materials

 

$235

Account 247B

Inventory – Work in Process – Body Shop

 

$795

Account 324

Sales Taxes Payable

 

$115

Account 470

Sales – Customer Paint Labor – Cars & Trucks

 

$595

Account 471

Sales – Customer Body Labor - Cars & Trucks

 

$740

Account 477

Sales – Parts – Body Customer Repair Orders – Cars & Trucks

 

$1,975

Account 479

Sales – Paint & Body Shop Materials

 

$315

Example 2

Record the $350 adjustment for difference in the book value of the Paint & Body Shop Materials inventory versus the physical inventory value at month-end

Journal: General Journal

Entry:

 

Debit

Credit

Account 679

Cost of Sales – Paint & Body Shop Materials

$350

 

Account 245

Inventory – Paint & Body Shop Materials

 

$350