Sunel Corporation uses the FIFO method of accounting for its inventories and uses the full absorption cost method. Its beginning inventory on January 1, 2012 was $4,000,000. During the year it incurred $20,000,000 in "full absorption" costs and $2,000,000 in additional Code Sec. 263A costs. Its ending inventory on December 31, 2012 was $6,000,000 (prior to any Code Sec. 263A costs). Determine Sunel Corporation's ending inventory using the uniform capitalization rules of Code Sec. 263A.

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The Answer of Sunel Corporation uses the FIFO method of accounting for its inventories and uses the full absorption cost method. Its beginning inventory on January 1, 2012 was $4,000,000. During the year it incurred $20,000,000 in "full absorption" costs and $2,000,000 in additional Code Sec. 263A costs. Its ending inventory on December 31, 2012 was $6,000,000 (prior to any Code Sec. 263A costs). Determine Sunel Corporation's ending inventory using the uniform capitalization rules of Code Sec. 263A.

Sunel Corporation Uses the FIFO Method of Accounting for Its