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4 Exercise 1-10A (Algo) Identifying upstream and downstream costs LO 1-4 4 points During year 1. Campbell Manufacturing Company incurred $83,300,000 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 year 1 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $60 per unit Packaging, shipping, and sales commissions are expected to be $18 per unit. Campbell expects to sell 1700,000 batteries before new research renders the battery design technologically obsolete Duning year 1. Campbell made 439.000 batteries and sold 405,000 of them book Required Hint a. Identify the upstream and downstream costs b. Determine the year 1 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 Campbell desires to earn a profit margin that is equal to 25 percent the total cost of developing, making and distributing the batteries d. Prepare a GAAP based income statement for year 1 Use the sales price developed in Requirement Print Reference Complete this question by entering your answers in the tabs below. Required A Required B Required Required Identify the upstream and downstream costs 1. Research and development 2 Packaging 3. Shipping 4. Sales commissions Required B > Exercise 1-10A (Algo) Identifying upstream and downstream costs LO 1-4 During year 1. Campbell Manufacturing Company incurred $83,300,000 of research and development (R&D) costs to create a long battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $60 per unit. Packaging, shipping, and sales commissions are expected to be $18 per unit Campbell expects to sell 1700,000 batteries before new research renders the batte design technologically obsolete. During year 1. Campbell made 439,000 batteries and sold 405,000 of them Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on the financial stateme that prepared in accordance with GAAP c. Determine the sales price assuming that Campbell desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries d. Prepare a GAAP-based income statement for year 1 Use the sales price developed in Requirement Complete this question by entering your answers in the tabs below. Required A Required B Required cRequired D Determine the year 1 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 4 Exercise 1-10A (Algo) Identifying upstream and downstream costs LO 1-4 Ants cBook During year 1. Campbell Manufacturing Company incurred $83,300,000 of research and development (R&D) battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $60 per unit. Packaging commissions are expected to be $18 per unit. Campbell expects to sell 1700,000 batteries before new resea design technologically obsolete. During year 1. Campbell made 439,000 batteries and sold 405,000 of them Required a. Identify the upstream and downstream costs b. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on that are prepared in accordance with GAAP. c. Determine the sales price assuming that Campbell desires to earn a profit margin that is equal to 25 perce developing, making, and distributing the batteries. d. Prepare a GAAP-based income statement for year 1. Use the sales price developed in Requirement Print References Complete this question by entering your answers in the tabs below. Required A Required B Required Required Prepare a GAAP-based income statement for year 1. Use the sales price developed in Requirement C. (Do not roun intermediate calculations.) CAMPBELL MANUFACTURING COMPANY Income Statement Net Income (loss)