Baxter Company: Work in process: solve for missing amounts
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Baxter Company developed the following data for the current year:
Beginning work in process inventory
$150,000
Direct materials used
90,000
Actual overhead
180,000
Overhead applied
135,000
Cost of goods manufactured
165,000
Total manufacturing costs
450,000
Baxter Company's direct labor cost for the year is ???
How do I manipulate and what formulas do I manipulate to get the missing Direct Labor total and Manufacturing Overhead total, of which Direct Materials (90,000) is given as well as the Total Manuf Costs total is given (450,000)
How do I get Predetermined overhead rate, and how and when do I use the Overhead Applied amount given??
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Solution Summary
Solution is three pages, showing the T accounts and cost flows and then populating the T accounts with the data given to show visually how the missing amount can be derived. 689 words in everyday language suitable for a novice.
An additional comment was added to explain how to solve when you only have DM and OH.
Solution Preview
My comments and cost flow chart is attached.
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