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During year 1. Rundle Manufacturing Company incurred $58,500,000 of research and development (R&D) costs to create a long life battery to use in computers. In

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During year 1. Rundle Manufacturing Company incurred $58,500,000 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 $70 per unit. Packaging, shipping, and sales commissions are expected to be $8 per unit. Rundle expects to sell 1.300.000 batteries before new research renders the battery design technologically obsolete. During year 1. Rundle made 440,000 batteries and sold 393,000 of them Required o. 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 Rundle desires to eam 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 nt ences Complete this question by entering your answers in the tabs below. Required A Required Required Required Identify the upstream and downstream costs Chapter 1 Assignment 3 developing, making, and aistnouung the partenes. d. Prepare a GAAP-based income statement for year 1. Use the sales price developed in 2.5 points Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D eBook Hint Determine the year 1 amount of cost of goods sold and the ending inventory balance that w statements that are prepared in accordance with GAAP. Print References Cost of goods sold Ending inventory Requieu 3 a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending inve that are prepared in accordance with GAAP. c. Determine the sales price assuming that Rundle desires to earn a profit developing, making, and distributing the batteries. d. Prepare a GAAP-based income statement for year 1. Use the sales price ints eBook Hint Complete this question by entering your answers in the tabs below. Print References Required A Required B Required c Required D Determine the sales price assuming that Rundle desires to earn a profit margin developing, making, and distributing the batteries. (Do not round intermediate decimal places.) Sales price

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