472 – Subaru – Internal Labor Express

Service Department

Sales Synopsis

Account 472

Debits

Credits

 

  1. The Express Subaru internal selling price of mechanical labor on completed repair orders.

672 – Subaru – Internal Labor Express

Service Department

Cost of Sales Synopsis

Account 672

Debits

Credits

  1. The cost of Express Internal labor performed on Subarus.

  2. The cost of Express Internal labor performed on Other Makes if the Retailer reports only New Subaru Sales on their Financial Statement.

 

 

Remarks:

 

The balances in these accounts represent internal mechanical labor on all completed Express repair orders involving Subaru vehicles.

 

Since in most cases Express technicians are employed on a salary, hourly, or guaranteed basis, their compensation will be charged to appropriate cost of sales account when they are paid; the amount that has been determined that Parts Department will absorb should be charged to Compensation – Express Service Account 36D (Parts).

 

Costing procedures should be reviewed periodically to assure that the service module matches payroll and that technicians are being costed correctly.

 

When an employee's time is divided, (such as a working shop foreman who spends part of his time in a supervisory capacity and the remainder in performing productive labor; or a porter who spends part of his time in a productive capacity such as washing cars or new car clean-up, and the remainder performing utility jobs) the salaries and/ or wages paid should be appropriately divided between the cost of sales account and the applicable expense account.

 

Internal repair orders should be authorized by the department manager requesting the work to be performed, indicating the authorized amount to be charged.