ABC Corp. is a manufacturing company that produces electronic devices. They purchase raw materials from suppliers and convert them into finished products. The company operates in multiple countries and has subsidiaries in different regions. ABC Corp. has just completed its fiscal year and is preparing its financial statements for external reporting.

Calculate the Cost of Goods Sold (COGS) for ABC Corp. for the fiscal year ended December 31, 2023. The beginning inventory of finished goods was $500,000, purchases of raw materials amounted to $2,000,000, direct labor costs were $1,200,000, and the ending inventory of finished goods was $600,000. Use the formula: COGS = Beginning Inventory + Purchases - Ending Inventory + Direct Labor.