636 – Certified Used Subaru - Reconditioning (Memo)

Used Vehicle Department

Cost of Sales Synopsis

Account 636

Remarks:

The amount shown on this line should be memo only and the total amount of Certified Used Subaru reconditioning should ALREADY be included as a cost of sale on Certified Used Subaru Retail Gross Profit line 28.

The balance in this account represents the total reconditioning costs on Used Certified Subaru Vehicles sold at retail.  Reconditioning costs should remain in inventory as part of the unit cost until such time as the unit is sold.

Reconditioning costs should be carefully estimated when the unit is accepted.  Proper used vehicle appraisal will aid in determining what reconditioning is required and its relative cost.

Actual reconditioning costs of each used unit should be compared with the estimated reconditioning cost made at the time of the original appraisal.  Large variances should be reviewed by the dealer with the used vehicle manager, the appraiser, and the service manager or used vehicle reconditioning manager.

Note: