(Oak Harbor, WA)
Are painting supplies cost of goods sold or operating expenses?
I am a bookkeeper for a painting contractor.
Can you tell me if the paint and the brushes, rollers, etc that he purchases for a specific job is considered COGS?
Generally, cost of goods
reports your direct costs related to providing a product or service. Operating expenses
, on the other hand, do not usually have a direct association to the product or service.
For example; paint, brushes, rollers can normally be tied to a particular customer or job ... while advertising, invoicing, signs or office space are difficult to attribute to a specific job or customer.
Soooo ... I would say that yes, any paint, rollers, brushes are classified as cost of goods rather than operating expenses.