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Calculate the cost of goods sold (COGS) using variable costing for a manufacturing company with the following data: beginning finished goods inventory of $220,000, cost
Calculate the cost of goods sold (COGS) using variable costing for a manufacturing company with the following data: beginning finished goods inventory of $220,000, cost of goods manufactured of $900,000, and ending finished goods inventory of $240,000. Compare the COGS calculated under variable costing with that under absorption costing, emphasizing the differences in profit reporting. Provide detailed calculations and explanations.
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