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Calculate the cost of goods sold (COGS) using absorption costing for a manufacturing firm with the following data: beginning finished goods inventory of $120,000, cost
Calculate the cost of goods sold (COGS) using absorption costing for a manufacturing firm with the following data: beginning finished goods inventory of $120,000, cost of goods manufactured of $500,000, and ending finished goods inventory of $140,000. Compare the COGS calculated under absorption costing with that under variable costing, highlighting the differences in profit reporting. Provide detailed calculations and explanations.
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