During Year $2,$ Campbell Manufacturing Company incurred $$126,900,000$ of research and development $($R&D$)$ costs to create a longlife battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in Year $2.$ Manufacturing costs $($direct materials, direct labor, and overhead$)$ are expected to be $$72$ per unit. Packaging, shipping, and sales commissions are expected to be $$14$ per unit. Campbell expects to sell $2,700,000$ batteries before new research renders the battery design technologically obsolete. During Year $2,$ Campbell made $433,000$ batteries and sold $394,000$ of them.

Required

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 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 $2.$ 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 D

Identify the upstream and downstream costs.

Research and development

Packaging

Shipping

Sales commissions

Pleade di all the requirements i will thumbs up