During Year 2. Finch Manufacturing Company incurred $73.500.000 of research and development {RED} 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 $62 per unit. Packaging, shipping, and sales commissions are expected to be $13 per unit. Finch expects to sell 1.500.000 batteries before new research renders the battery design technologically obsolete. During Year 2, Finch made 444.000 batteries and sold 394,000 ofthem. Req u ire d :1. Identify the upstream and downstream costs. in. Determine the Year 2 amount of cost of goods sold and the ending inventory balance that would appear on the nancial statements that are prepared in accordance with GAAP. 1:. Determine the sales price assuming that Finch desires to earn a profit margin that is equal to 25 percent ofthe total cost of developing, making. and distributing the batteries. cl. Prepare a GAAPbased 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 E Required (3 Required D Determine the sales price assuming that Finch desires to earn a prot margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries. {Do not round intermediate calculations. Round your final answer to 2 decimal places.) -:|