Section 02.14: Account Codes -- Merchandise for Resale or Redistribution (60000-69999)
General
These account codes represent the direct cost of materials and outside services used by an auxiliary enterprise or service department to create products and services for which they receive revenue from external parties and university departments.
Merchandise for resale and redistribution account codes are:
- Not synonymous with "cost of goods sold"
In addition to materials and outside services, "cost of goods sold" would also include labor and overhead. Therefore, these account codes are part but not all of "cost of goods sold."
- Typically associated with inventories
Materials purchased are added to inventory. Materials used decrease inventory and are charged as an expense to these merchandise for resale and redistribution account codes. Expenditures for outside services to be resold or redistributed are charged directly to these account codes and do not involve inventory.
- Only used when the auxiliary enterprise or service department will derive revenue from the resale or redistribution of the materials and outside services
See (iii) for a detailed description.
- Not used if the expenditure of the materials and outside services are passed through to another university department
See (iv) for a detailed description.
- Used to avoid double-counting and overstating of expenditures on a university-wide basis
See (v) for a detailed description.
[1] General Commodities
[2] Food Stuffs
62008 Milk & Ice Cream
Expenditures for milk products, including ice cream and butter. For margarine, use code
62007 (Grocery).
[3] Agricultural-Related Resale
[4] General Services-Resale
[5] Other Resale Items
[6] Utilities Cost for Redistribution
