During Year 2, Munoz Manufacturing Company incurred $102,900,000 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 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 $6 per unit . Munoz expects to sell 2,100,000 batteries before new research renders the battery design technologically obsolete. During Year 2. Munoz made 430,000 batteries and sold 395,000 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 Munoz desires to earn a profit margin that is equal to 20 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 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. Cost of goods sold Ending inventory Required A Required B Required C Required D Determine the sales price assuming that Munoz desires to earn a developing, making, and distributing the batteries. (Do not round decimal places.) Sales price intermediate calculations.) MUNOZ MANUFACTURING COMPANY Income Statement Sales revenue 0 Cost of goods sold Gross margin Research and development Selling expenses Net income (loss) $ 0