During Year 2. Finch Manufacturing Company incurred $73.500,000 of research and development {REED} costs to create a long-lite battery to use in computers. In accordance with FASEE standards, the entire REZD 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. Required 5. 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. c. 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. d. 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 B Required (3 Required D 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. Cost of goods sold Ending inventory