Check During Year 2, Gibson Manufacturing Company incurred $44,000,000 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 2. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $64 per unit. Packaging, shipping, and sales commissions are expected to be $15 per unit. Gibson expects to sell 1,000,000 batteries before new research renders the battery design technologically obsolete. During Year 2, Gibson made 434,000 batteries and sold 405,000 of them. Required k a. Identify the upstream and downstream costs. b. Determine the Year 2 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 Gibson desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the batteries. ces d. Prepare a GAAP-based income statement for Year 2. Use the sales price developed in Requirement c. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D4 Complete this question by entering your answers in the tabs below. 5 olnts Required A Required B Required C Required D Identify the upstream and downstream costs. eBook Hint 1 . Research and development Print 2. Packaging References 3. Shipping 4. Sales commissions Required A Required B >the sales price devell Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Dok nt Determine the Year 2 amount of cost of goods sold and the ending inventory balance statements that are prepared in accordance with GAAP. nt ances Cost of goods sold Ending inventory Ints Complete this question by entering your answers in the tabs below. eBook Required A Required B Required C Required D Hint Print Determine the sales price assuming that Gibson desires to earn a profit margin that is e developing, making, and distributing the batteries. (Do not round intermediate calculati eferences decimal places.) Sales price Complete this question by entering your answers in the tabs below. .5 oints Required A Required B Required C Required D eBook Prepare a GAAP-based income statement for Year 2. Use the sales price developed intermediate calculations.) Hint GIBSON MANUFACTURING COMPANY Print Income Statement References Net income (loss)