During Year 2, Campbell Manufacturing Company incurred $113,400,000 of research and development (R8D) 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 Yoar 2. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $60 per unit, Packaging, shipping, and sales commissions are expected to be $19 per unit. Campbell expects to sell 2,700,000 batteries before new research renders the battery design technologically obsolete. During Year 2, Campbell made 441,000 batteries and sold 392,000 of them. Required a. Identify the upstream and downstreom costs. b. Determine the Year 2 amount of cost of goods sold and the ending inventory balence that would appear on the financial statements that are prepared in occordance with GAAP. c. Determine the soles price assuming that Compbell desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the botteries. 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. Determine the Year 2 amount of cost of goods sold and the ending imventory balance that would appear on the financial statements that are prepared in accordance with GAAP. During Yeor 2, Campbell Manufacturing Company incurred $113,400,000 of research and development (R\&D) costs to create o long-lifo battery to use in computers. In accordance with FASB standards, the entire R\&D cost was recognized as an expense in Year 2. Manufocturing costs (direct materials, direct labor, and overheod) are expected to be $60 per unit. Packaging, shipping, and sales commissilons are expected to be $19 per unlt. Campbell expects to sell 2,700,000 batteries before new research renders the battery deslgn technologlcally obsolete. During Year 2, Campbell made 441,000 batterles and sold 392,000 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 financlal statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Campbell desires to earn a proft margin that is equal to 30 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. Determine the sales price assuming that Campbell desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distrbiting the batteriess. (Do not round intermediste caloulations. Round your final answer to 2 decimal places.y During Year 2, Campbell Manufacturing Company incurred $113,400,000 of research and development (R\&D) costs to create a long-tife 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 overtead) are expected to be $60 per unit. Pockaging, shipping, and sales commissions are expected to be $19 per unit. Campbell expects to sell 2,700,000 batteries before new resenrch renders the battery design technologically obsolete. During Year 2. Campbell made 441,000 batteries and sold 392,000 of them, Required a. Identify the upstream and downstream costs. b. Determine the Year 2 amount of cost of goods noid and the ending inventory balence that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the snies price assuming that Campbeil desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the batteries. d. Prepore a GAAP.based income statement for Year 2. Use the saies price developed in Requirement c. Compiete this question by entering your answers in the tabs below. Prepare a GAAp-based income statement for Year 2. Use the sales price developed in flequirement c. (De nopt round intermediate eaiculations.) developing. making, and distributing the batterles. d. Prepare a GAAP.based income statement for Year 2. Use the sales paice developed in Requitiment c. Complete this question by entering your answers in the tabs below. Propare o GAAp-based income ntatement for Year 2. Use the sales price developed in Requirement . (Do not round Intemediate calculations.)
