Exercise 1-10A (Algo) Identifying upstream and downstream costs LO 1-4 During year 1, Jordan Manufacturing Company incurred $132,000,000 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 1 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $68 per unit. Packaging, shipping, and sales commissions are expected to be $14 per unit. Jordan expects to sell 3,000,000 batteries before new research renders the battery design technologically obsolete. During year 1, Jordan made 437000 batteries and sold 394,000 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 balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Jordan 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 1. Use the sales price developed in Requirement c. Required A Required B Required c Required D Identify the upstream and downstream costs. 1. Research and development 2. Packaging 3. Shipping 4. Sales commissions HA Required B Required A Required B Required c Required D Determine the year 1 amount of cost of goods sold and the ending inventory ba statements that are prepared in accordance with GAAP. Cost of goods sold Ending inventory Required A Required C Uruul uudio L Canil a punilihat girl that is equal developing, making, and distributing the batteries. (Do not round intermediate calculations. decimal places.) Sales price