ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddlewar. Q tice Exercises 8 i Saved Help Save 4 During Year 2, Gibson Manufacturing Company incurred $44,000,000 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 2. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $64 per unit. Packaging, shipping, and sales commissions are expected to be $15 per unit. Gibson expects to sell 1,000,000 batteries before new research renders the battery design technologically obsolete. During Year 2, Gibson made 434,000 batteries and sold 405,000 of them. Required eBook a. Identify the upstream and downstream costs. Hint 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. Print c. Determine the sales price assuming that Gibson desires to earn a profit margin that is equal to 30 percent of the total cost of ferences 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 Identify the upstream and downstream costs. developing, making, and distributing the batteries. d. Prepare a GAAP-based income statement for Year 2. Use the sales price developed in 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 wo statements that are prepared in accordance with GAAP. Cost of goods sold Ending inventory developing, making, and distributing the batteries. d. Prepare a GAAP-based income statement for Year 2. Use the sales price developed in Requirer Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the sales price assuming that Gibson desires to earn a profit margin that is equal to 30 per developing, making, and distributing the batteries. (Do not round intermediate calculations. Round yo decimal places.) Sales price