 In this presentation, we're going to add a cost of good sold accounts that we're going to be used as we go through our bookkeeping process. Let's get into it, within to it, QuickBooks Online. Here we are in our job costing company file. We're on the dashboard. We're going to be considering entering accounts now. So let's first jump over to our Excel worksheet to see what our objective will be. When we enter this into our practice problem within Excel, we're basically going to put all this information if it's going to a job to the cost of good sold. It's going to be part of the cost of the job. So we're going to put that into the cost of good sold. However, we might want more detail than that as we enter this into our QuickBooks system. So we'd like to be able to break it out by possibly categories of, say, at the least, the direct materials, direct labor, and factory overhead, and possibly more detail than that, including something like if this was going to be the types of things that we have within our job costing, we might set up these types of accounts. This is what we'll set up in our practice problem. Surface finishing, plaster and gypsum board, cement render, ceramic tile, drop, drop ceiling, flooring, marble wall covering, and so on and so forth. So we're going to be following along with our practice problem, but we're going to be adding more detail as we go. So we're going to set up these in our accounts and we're going to do so so we can provide that more detail as we go through our projects. So to do that, we're going to go to the accounting at the bottom. So we've got the hamburger, of course, open. We're going to the accounting and we want to take a look at the chart of accounts. So you want to be on that first tab, that's going to be the chart of accounts. Now I tried not to get QuickBooks or let QuickBooks set up a chart of accounts, but I couldn't. They gave me one anyway. So here's the chart of accounts that we have set up. We're basically going to be creating more accounts that are going to be lined up in the cost of good sold type of section. So that's what we're going to do. I'm going to close up the hamburger to do this. And then I'm going to go back up top and we're going to be adding new accounts. Now as we do this, just remember, of course, these accounts are going to be lined up by typically you want to think of them at least by account type. You could search them in other kind of formats as well, up top type name and so on. But usually you want to think about them in terms of account types, assets, liabilities, equity, income, and then expense type of accounts. We're looking at expense type of accounts here. And I'm going to categorize all of our job related information into expense type of accounts. That will allow us to have that kind of breakout on the income statement of the job related items all being in cost of good sold. And then any other period costs will be down below in the cost of good sold. And then we can further break this information out into the subcategories if we so choose. So here's how we're going to set this up. I'm going to add a new account, so I'm going to add a new account up top. And I'm going to call this a cost of good sold type of account. So we want to make this a cost of good sold type of account. That will basically allow us to kind of put it in a separate category when we do the groupings. Now I'm just going to take other for all the cost of good sold types. And then I'm going to make this a category. Now this is going to be a subcategory type of field. I'm going to call this materials. So I'm just going to call it materials. And I'm going to put up top materials. And that's going to be it for materials. That's going to be our name. And then I'm going to use that as kind of like a parent account where I'm going to put the other kind of material items into. So then I'm going to say save and close. And that's where we're going to put all of the material accounts that we'll take a look at. But the other three items that we would have involved, I'm going to say new now. I'm going to make another one. It's going to be cost of good sold. So I'm going to go back down and say I want another cost of good sold account. I'll put this into the other, into other. And then I'm going to call this labor. So labor. And again, I'm not going to make it a subaccount. These are going to be like the parent type of accounts in cost of good sold. So we'll have cost of good sold that we can group. And then these basically parent accounts, which will be then housing the subaccounts within them. So then if we scroll down just so you can see these now. So now we've got the cost of good sold here for the labor and the materials. And you can see the account types being the cost of good sold. Then I'm going to go back up top and I'm going to say we want a new one. And I'm going to call this cost of good sold. Again, I'm going to make it a cost of good sold. And I'm going to call this, I'll make it an other. And this is going to be overhead, overhead. So like so, and I'll put that in the description as well. Probably don't even need the description, but then we'll have that. So now when I start to categorize these items, I can categorize them into the subcategories here. Now I'm going to set up our accounts for the things that we're basically going to be using. And that's going to be these items. Now these I'm going to put all under basically the materials items, because these are all in essence going to be in the materials column. So now these are all going to be sub kind of accounts under materials. So we got cost of good sold. You're visualizing then under that you've got these three categories, which are going to be direct materials, labor and overhead. And within materials, we're going to have the specific materials. So I'm going to be now adding these items. I'm just going to copy and paste them over. So I'm just going to say, all right, I'm copying that, and then I'll minimize this. And then I'll go back over here and we're going to say new account. This is going to be a cost of good sold type of account. That's going to be a bit tedious, I know. But here we go. It's going to be great. It's going to be great. Not tedious at all. This is good stuff. And then it's going to be going into the name, surface finishing. And then I'm going to make this a sub-account of the cost of good sold for the materials. Materials. All right. So that's what we're going to do with all these. I'm just going to make them all a sub-account for the materials. Okay. And then I'm going to say save. And this time, instead of saying close, why don't I do save and new? That could save us some time. Probably could have done that a few times already if I wanted to. And then we're going to do this all the way down. I'm going to say plaster. I'm going to double-click on that. I'm going to copy that. I'm going to minimize this. And we're going to say this is going to be a cost of good sold type of account. And it's going to go into other, like so. And then that's going to be the name. And this is going to be materials. Materials. Same process. That's the sub-account. So we're going to imagine this being under that cost of good sold materials type account, which is all going to be under cost of good sold. Then we'll do this again. To save and new again. And then we'll do this again. And I'm going to say this is going to be the cement. So let's copy that. And then I'll minimize this. And then we'll say that this is going to be a cost of good sold type of account. And then we're going to say that I'm going to put it as other. And this is going to be the name. And it's going to be under the materials, like so. And there we have that. I'm going to save and new. Let's do it again. We're going to go back on over to the worksheet. I'm going to copy the next one, ceramic tile, so on and so forth. I'm going to make this a cost of good sold type of account, as is our practice, cost of good sold. Name is going to be here. And then it's going to be under the sub-category of materials. Some materials. And then we're going to do this again. Going to go back on over. And we're going to say we have the dropped ceiling and so on. That's one. And I'm going to minimize that. We're going to be putting this into the cost of good sold, as well, cost of good sold. We're going to make this in the other area. We're going to then paste this on over. This is going to be under the category of materials. Materials. All right. Let's do it again. We're going to save that one and then go back on over into Excel. We're going to be double-clicking. Now we've got the floor. So we'll copy that one. We're going to minimize the tab up top. We're going to call this a cost of good sold account. So once again, it's going to be in that cost of good sold. It's going to be into the other. Let's make it that other one. I'm going to paste the name here and put in the sub-account of materials. So there we have that. And we'll save a new again. Go on back over to Excel. And we'll pick up the next one is marble. So I'm going to copy that one, copy the marble. Marble's nice. And then I will hit the dropdown. We're going to make this a cost of good sold type of account. I'm going to put it into the other once again, other. And then I'll paste this as the name. It's going to be the sub-account of materials, I think. Pretty sure. That's the one. Yeah. All right. Then I'm going to say save a new. Let's do this again. We're going to go back on over to Excel. We're going to copy the next one. We're almost there. We're pretty close. We're pretty close. Then we have to stop. This is good time. So we'll have to stop after that. We don't have any more we get to do. This is going to be in the cost of good sold. We're going to put this into the detail other. And then I'm going to say name. It's going to be that name that I copied. And then this is going to be materials. Some materials once again. We're going to say save a new once again. Then we're going to go back into Excel double click and we're going to pick the next one up paint wood stain and that stuff. So I'm going to minimize this and we're going to say then we'll say this is going into the cost of good sold cost of good sold. And then the type is going to be other. That's not other. That's delivery. It's not the one I wanted. I want the one above it. Then I'll paste this one here and we're going to say this is going to go into. Yeah. Yeah. Materials. And then we're going to say save a new and we only got two or three more two or three more three more staff. So I'll minimize this staff a type of artificial stone. Okay. I thought that was like labor. No. It's an artificial stone staff. All right. That should go into materials and then we're going to say this is going to be other. And this is where we have it. So again staff doesn't mean it should go into labor. It's an artificial stone. So we're going to then say this is materials and that should correctly go into the materials and we're going to say save a new and then we get to do this two more times two more times. So make sure you relish the last two's because this is it. We're done with it after this one. Then we'll go back up top and we're going to say that this has got to be into the cost of good sold cost of good sold. And I'll put that into other again and we'll paste the name there and this will go into the sub of materials materials and then I'm going to say save a new the last time last time we should do it really slow just to make sure we get everything out of it. We're going to say the wood finishing and then go back on over we're going to be picking up the cost of good sold cost of good sold and then we want to put that into the other category. I'm going to paste this up top in the name. It's going to be the subcategory once again and finally of materials. So there we have that. I'm going to say save and this time I'm going to select little drop down thing and say save and close because that was the last one. If you didn't see that you can close it afterwards but now if you go down here now we've got all these cost of good sold accounts and you can see the labor doesn't have any other sub labor but you can do the same process for the type of labor. And then of course we've got the materials and then we have the sub accounts of the materials which we added all those basically sub items for and then we've got the cost of good sold item down here. I'm not going to be using in the practice problem the shipping at this time so I could just right click on this and make it inactive. So I'm going to go ahead and make that inactive that might be a good thing to do. And then if I go back down we had this is just like the general cost of good sold account. Let's go ahead and make that inactive as well. I'll say let's make that inactive and there we have that and so that now you're imagining when we make our financial statements now we're going to have on the income statement cost of good sold which we'll be able to minimize if we need to have a subgroup of it and then within there you've got the parent groups of labor materials and overhead and then within labor we're going to have the breakout of our subcategories of the labor all of these in the type of accounts as the cost of good sold. That's going to be it for now let's get out of here.