7. What is the explanation for the difference between the consolidated cost of goods sold and the combined cost of goods sold of the two affiliated companies? Prepare a schedule reconciling combined and consolidated cost of goods sold, showing the amount of intercompany profit in the beginning and ending inventories of S Company and demonstrating how you determined the amount of intercompany profit. (Hint: A well-organized and labeled T-account for cost of goods sold will be an acceptable approach.)