675 Adjustment – Cost of Labor Sales – Body Shop

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 675 is established to record the amount of adjustment required to reconcile Work in Process to the actual amount of labor on open repair orders.

Example 1

Record the $605 monthly adjustment to agree with the schedule of the cost of labor sales on paint & body repair orders in process.

Journal: General Journal

Note:

Transactions, which are related, should be recorded in separate sub-accounts.  Sub-accounts serve to keep records organized for future analysis and auditing.  The sub-accounts in these examples are designated by a letter following the account number (suffix).  Please refer to your DSP's instructions for establishing sub-accounts.