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In a profit and loss, what would be examples of a car mechanics cost of sales?

Posted: 29-11-2010 | Author: admin | Category: United Kingdom

I am filling in my husbands profit and loss and it says:
SALES=
Less cost of sales=
Purchases=
Labour=
other direct costs=

Any help would be much appriciated.

Category: United Kingdom by admin

Rajinder, on November 30th, 2010 at 11:19 am Said:

Cost of sales for a car mechanic are spares that are used in the repair jobs. Tools are not part of the cost of sales. To calculate cost of sales do the following:

Purchase price of the spares Add opening stock of spares less closing stock of the spares = cost of sales.

To calculate profit and loss acount =

Sales less cost of sales less labour less other direct costs like rent of garage, electricity etc.