Missing Amounts in Cost of Goods Sold Model For each of the following independent cases, fill in the missing amounts: Enter all answers as positive numbers. Beginning inventory Purchases (net) Transportation-in Cost of goods available for sale Ending inventory Cost of goods sold Case 1 5,560 160 7,160 5,610 10*0** Case 2 $2,420 1,750 5,650 Case 3 $2,770 423 8,800 1,210

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.