Exercie 1-10A (Algo) Identifying upstream and downstream costs LO 1-4 During year 1, Gbson Manufacturing Company incurred $44,000,000 of research and development (R8D) costs to create a long -lfe battery to use in computers. In accordance with FASB standards, the entire R\&D cost was recognized as an expense in yoar 1 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $78 per unit. Packaging, shipping, and sales commissions are expected to be $8 per unit. Gibson expects to sell 1,000,000 batteries before new research renders the battery design technologically obsolete. During year 1, Gibson made 446,000 botteries and sold 403,000 of them. Required a. Identify the upstream and downstream costs b. Determine the year 1 amount of cost of goods sold and the ending inventory balonce that would oppear on the financial statements that are prepared in accordance with GAAP c. Detemine the sales price assuming that Gibson desures to earn a profit margin that is equal to 20 percent of the total cost of developing. making, and distributing the bottenes. d. Prepare a GAAP. based income statement for year 1 . Use the sales pence developed in Requitement c that are prepared in accordance with GAAP. c. Determine the sales price assuming that Gibson desires to earn a profit margin that is equal to 20 percent of the total cost developing. making, and distributing the batteries. d. Prepare a GAAP-based income statement for year 1 . Use the sales price developed in Requirement c. Answer is not complete. Complete this question by entering your answers in the tabs below. Determine the year 1 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. Complete this question by entering your answers in the tabs below. Determine the sales price assuming that Gibson desires to earn a profit margin that is equal to 20 percent of the total cost of developing, making, and distributing the batteries. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Complete this question by entering your answers in the tabs below. Prepare a GAAP-based income statement for year 1. Use the sales price developed in Requirement c. Note: Do not round intermediate calculations