A manufacturing company, ABC Inc., produced 10,000 units of a product during the year 20XX. The total manufacturing costs were $200,000, consisting of $120,000 in direct materials, $50,000 in direct labor, and $30,000 in manufacturing overhead. If the company sold 8,000 units during the year, calculate the cost of goods sold and the ending inventory using the absorption costing method. Explain how absorption costing allocates fixed overhead costs to units produced and discuss its implications on income reporting and inventory valuation.