1 During 2017, Solomon Manufacturing Company incurred $124,700,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in 2017 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $78 per unit. Packaging, shipping, and sales commissions are expected to be $16 per unit. Solomon expects to sell 2,900,000 batteries before new research renders the battery design technologically obsolete. During 2017, Solomon made 443,000 batteries and sold 395,000 of them. Required a. Identify the upstream and downstream costs b. Determine the 2017 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP c. Determine the sales price assuming that Solomon desires to earn a profit margin that is equal to 20 percent of the total cost of developing, making, and distributing the batteries d. Prepare a GAAP-based income statement for 2017 Use the sales price developed in Requirement c Complete this question by entering your answers in the tabs below. Required A Required Required CRequired Identify the upstream and downstream costs Research and development 2 Packaging 3 Shipping Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the 2017 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP Cost of goods sold Ending inventory Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Requied Required D Determine the sales price assuming that Solomon desires to earn a profit margin that is equal to 20 percent of the total cost of developing, making, and distributing the batteries. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Sales price Required B Required D Required A Required BRequired C Required D Prepare a GAAP-based income statement for 2017. Use the sales price developed in Requirement c. (Do not round intermediate calculations.) SOLOMON MANUFACTURING COMPANY Income Statement Not income (loss)